Gold and silver prices rose strongly on Wednesday after US Treasury bond yields fell. Data showed December retail sales remained flat, hinting at a slowing US economy before key jobs data. Lower US yields make holding gold, which does not pay interest, more attractive. Spot gold was up 0.7% at $5,057.23 per ounce by 04:23 GMT. US gold futures for April delivery gained 1% to $5,081.40 per ounce. Spot silver jumped 2.3% to $82.56 per ounce, bouncing back from a 3% drop the day before. Kyle Rodda, senior market analyst at Capital.com, said, "Over the last couple of weeks, (precious metals) became very dislocated from fundamentals, so it pretty much decoupled from interest rate policy. Yields being lower are obviously supportive of gold today." US yields fell Tuesday after reports indicated the economy may be slowing, giving the Federal Reserve more room to cut interest rates. Retail sales were unchanged in December as people cut back on big purchases like cars. This suggests slower consumer spending and economic growth. Rodda added, "After soft retail sales numbers, there’s the expectation that perhaps, further and deeper rate cuts may be needed more imminently than previously thought." However, Federal Reserve Bank of Cleveland President Beth Hammack said on Tuesday there is no urgency to adjust interest rates this year, citing a "cautiously optimistic" economic outlook. Investors currently expect at least two rate cuts of 25 basis points in 2026, starting in June. Bullion prices often rise when interest rates are low since they offer no yield. Investors now await January’s non-farm payrolls report and Friday’s inflation data for more clues on the Fed’s next moves. Spot platinum also rose 2.1% to $2,131.60 per ounce, while palladium gained 2% to $1,741.78.