Gold, silver climb as US yields fall on softer retail sales

By Ishaan Arora

Feb 11 (Reuters) - Gold and silver prices rose on Wednesday as U.S. Treasury bond yields fell after data showed December retail sales growth stalled, signalling a softening economy ahead of key ?jobs data.

Spot gold was 0.5% higher at $5,049.59 ?per ounce by 0242 GMT.

U.S. gold futures for April delivery gained 0.9% to $5,073.40 per ounce.

Spot silver ?was up 2.2% at $82.43/oz, after falling more than 3% in the ?previous session.

"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," said Kyle ?Rodda, a senior market analyst at Capital.com.

U.S. yields fell on Tuesday after a raft of data suggested the economy may ?be softening, giving the U.S. ?Federal Reserve ?more room to cut interest rates. [US/]

Falling yields reduce the cost of holding metals and often come with macro signals that favour them.

U.S. ?retail sales were unchanged in December as households scaled back ?spending on motor vehicles and other big-ticket items, potentially setting consumer spending and the economy on a slower growth path.

"After soft retail sales numbers, there's the expectation that perhaps, further and deeper rate cuts may ?be needed ?more imminently than previously thought," Rodda added.

Federal Reserve Bank ?of Cleveland President Beth Hammack, however, said on Tuesday that the ?U.S. central bank faces no urgency to change the setting of interest rates this year amid a "cautiously optimistic" outlook for economic activity.

Investors expect at least two 25-basis-point rate cuts in 2026, with the first one expected in June. Non-yielding bullion tends to do well in low-interest-rate environments. [FEDWATCH]

Investors await the non-farm payrolls report ?for January, due later in the day, and inflation data on Friday for more cues on the Fed's monetary policy path.

Spot platinum rose 2% ?to $2,127.80 per ounce, while palladium added ?1.8% to $1,738.62.

(Reporting by Ishaan Arora; Editing by Sherry ?Jacob-Phillips and Ronojoy Mazumdar)