Khaberni - Gold and silver continued their gains on Monday amidst the dollar's decline, while investors await an important report on the US labor market due to be released later in the week to assess the interest rate trajectory.
Gold rose in the spot market by 1.4% to $5029.09 per ounce (troy) by 00:37 GMT after a nearly 4% increase on Friday.
The US futures for gold delivery in April increased by 1.4% to $5051.0 per ounce.
Silver surged 2.5% in the spot market after a 10% increase in the previous session.
The dollar fell to its lowest level since February 4, making dollar-denominated metals cheaper for foreign buyers.
Asian stock markets soared to new heights with the overwhelming victory of Sanae Takaychi, the Prime Minister of Japan, in the elections which spurred expectations for more accommodative policies, while a sense of relief prevailed among investors on Wall Street following the recent rebound.
US Treasury Secretary Scott Bisent said on Sunday that he does not expect the Federal Reserve (the US central bank) to move quickly to reduce its balance sheet, even with the nomination of Kevin Warsh, who has criticized the US central bank's bond purchases, for the Federal Reserve Chairman position.
The president of the Federal Reserve Bank in San Francisco, Mary Daly, said on Friday that she believes there is a need for one or two more cuts in interest rates to address the weakness in the labor market.
Investors expect at least two 25 basis point cuts by 2026, with the first cut expected in June.
Investors are awaiting the non-farm payroll report for January, scheduled to be released on Wednesday, to get more indicators about the Federal Reserve's monetary policy path.
The report, which was scheduled to be released last week, was delayed due to a partial government shutdown that lasted four days and has now ended.
Iranian Foreign Minister Abbas Araghchi said on Sunday that recognizing Iran's right to enrich uranium is key to the success of nuclear negotiations with the United States.
US and Iranian diplomats held indirect talks in Oman on Friday, aimed at reviving diplomatic efforts amidst US naval enhancements near Iran.
For other metals, the spot price of platinum rose 1.8% to $2134.18 per ounce, while the price of palladium increased by 1.8% to $1737.75.
