Gold and silver prices rise as investors await reduction in size of interest rate hikes by Fed

Precious metals prices rose as the dollar weakened and U.S. bond yields dropped.  Investors assessed the prospects for less aggressive interest rate hikes by the Fed after optimistic non-farm payrolls data had been released. 

David Meger, director of metals trading at High Ridge Futures, said that Friday's U.S. labor market data was in line with forecasts. The nonfarm payrolls figure came as a surprise to investors. At the same time, wage growth slowed. 

He believes that the recent data will not affect the Fed's policy, despite the fact that investors are waiting for the Fed's aggressive rate hikes to end. 

Gold and silver prices jumped as the dollar lost value and U.S.10-year Treasury yields fell.

According to Jim Wyckoff, senior analyst at Kitco Metals, gold prices will trend sideways to higher in the first quarter. He cited that hedge funds maintained a bullish stance on gold in early 2023.