Silver Soars 6%, Gold Extends Gains: AG, HL, PAAS Stocks Get Pre-Market Boost

Spot silver prices jumped 6.5% to $86 an ounce while spot gold gained 1.8% to $5,113.6 per ounce at the time of writing.

• Silver futures for April deliveries rose 6.6% to $86 an ounce while gold contracts expiring in April were up 2% at $5,131 per ounce.
• The DXY index inched 0.2% lower to 96.3.
• Silver volatility is easing, with more stable trading emerging in Shanghai ahead of the extended lunar new year holiday, Ole Hansen said.

Gold and silver rose on Wednesday, boosting mining stocks as a weaker dollar supported prices and stronger lunar new year demand from China added momentum.

Spot silver (XAG/USD) prices jumped 6.5% to $86 an ounce, while futures for April 2026 deliveries rose 6.6% to $86 an ounce at the time of writing.

Spot gold (XAU/USD) gained 1.8% to $5,113.6 per ounce, having climbed above $5,000 earlier this week for the first time since January 30, when a historic rout wiped out the majority of gains for the year. Contracts expiring in April 2026 were up 2% at $5,131 per ounce.

The DXY index, which measures the greenback against six major currencies, inched 0.2% lower to 96.3.

Fed Rate-Cut Expectations Back In Focus

Gold remained higher after weak U.S. retail sales strengthened expectations of Federal Reserve rate cuts, pressuring the dollar and Treasury yields ahead of the delayed January payrolls report, noted Ole Hansen, veteran commodities expert and Head of Commodity Strategy for Saxo Bank. U.S. retail sales in December were flat, following a 0.6% increase in November.

“Technical resistance is seen near $5,090, and a break above could open for a move toward $5,140, the 61.8% retracement of the recent correction. Meanwhile, silver volatility continues to ease, with more orderly price action also emerging in Shanghai ahead of the extended Lunar New Year holiday,” Hansen said in a note on Wednesday.

“Expectation of a slowdown in job additions in the U.S. – to be confirmed later today - is supporting the case that Fed can continue to cut interest rates this year,” UBS analyst Giovanni Staunovo told Reuters on Wednesday.

China Demand Adds Seasonal Tailwind

Meanwhile, according to a Bloomberg report, dealers in Hong Kong have reported a sharp increase in gold demand ahead of the Lunar New Year, with retail buyers driving purchases of small bars and coins for gifting.

“The correction in gold and silver prices came at the right time, just before the Chinese New Year," ANZ analyst Soni Kumari told Reuters.

Mining Stocks Gain In Pre-Market Trade

Shares of silver miners First Majestic (AG) and Hecla Mining (HL) gained more than 4% in pre-market trading, while Pan American Silver Corp. (PAAS) stock rose over 3%. Meanwhile, shares of gold miners Newmont Corp. (NEM) and Barrick Gold (B) gained 2.6% each.

Retail sentiment for iShares Silver Trust (SLV) and SPDR Gold Shares ETF (GLD) remained in the ‘bearish’ territory over the past 24 hours.

How Did Stocktwits Users React?

One user said that the market may be preparing for one last move lower before the next rally.

Year-to-date, spot silver has gained 19.3% while spot gold has climbed 17.6% higher. 

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