Global Metals Market Update: February 12, 2026 The precious metals complex faced a challenging session on Thursday, February 12, as a surge in the U.S. dollar and shifting interest rate expectations pressured major commodities. Gold and silver prices retreated from recent highs following a series of robust economic signals from the United States. Gold and Silver Face Headwinds Spot gold prices fell back toward the **$5,000** per ounce threshold, trading near **$5,080** during the Asian session. This follows a period of high volatility where the metal hit record levels earlier in the month. In domestic markets, gold futures on the MCX settled near **₹1,59,750** per 10 grams, maintaining a fragile position below the **₹1.60 lakh** psychological barrier. Silver experienced a more pronounced decline, with spot prices plunging **2%** to approximately **$82.20**. On the MCX, silver futures moved closer to the **₹2.89 lakh** per kg mark. Despite this sharp correction, silver remains supported by thinning global inventories, which have recently hit 10-year lows on major exchanges. Economic Drivers and the Federal Reserve The primary catalyst for the downward movement was the latest U.S. labor market data. January payroll figures significantly exceeded market forecasts, showing the largest increase in over a year. The unemployment rate also saw an unexpected decline to **4.4%**, reinforcing the narrative of a resilient economy. These "hot" employment figures have effectively cooled expectations for an imminent interest rate cut. Traders have largely pushed back their forecasts for the next Federal Reserve policy easing from June to July 2026. Because gold and silver are non-yielding assets, the prospect of "higher-for-longer" interest rates typically increases the opportunity cost of holding them, leading to price liquidations. Currency Impact and Yields The U.S. Dollar Index (DXY) strengthened in response to the jobs report, making gold more expensive for international buyers. While 10-year Treasury yields showed some softening toward the **4.20%** mark earlier in the week, the resilient economic data has provided a floor for yields, further limiting the upside for precious metals in the short term. Investors are now pivoting their focus toward upcoming inflation data. The Consumer Price Index (CPI) report, expected later this week, will be the next critical indicator. If inflation remains sticky above the **2.7%** level seen in late 2025, it may further cement the Federal Reserve's hawkish stance. Industrial Metals Performance Platinum and palladium showed divergent trends during the session. Platinum prices dipped slightly but remain positioned for a potential long-term rally due to a projected supply deficit of **689,000 ounces** for the 2026 period. Palladium managed to post a slight increase, trading around **$1,772** per ounce. The metal is finding support from supply-side constraints, including the planned closure of major mines in Canada by mid-2026, which is expected to tighten global availability.