Gold, silver prices surge as US economy sheds 23,000 jobs

AI desk brief

Gold surged to a seven-week high and silver outperformed after the US economy unexpectedly shed 23,000 jobs in July, sharply weakening the case for another Fed rate hike. Comex December gold rose 2.3% to $4,401/oz by 10:03 a.m. in New York, while September silver jumped 3.6% to $63.85/oz. The move took gold to its highest since mid-June and silver to a seven-week high, with both metals rebounding on the view that weaker labor data will pull Treasury yields and the dollar lower.

The payrolls report was a significant downside surprise versus expectations for an 80,000 gain, and prior months were revised lower as well: June to +20,000 from +147,000 and May to +63,000. The unemployment rate dipped to 4.1%, but participation fell to 61.4%, the lowest in more than five years, reinforcing the message that the labor market is losing momentum. Rate markets quickly repriced, reducing odds of a September Fed increase and lifting the appeal of non-yielding bullion.

For metals, the key near-term catalyst is whether the market interprets this as the start of a softer labor trend or a one-off miss. If yields keep easing, gold can extend the relief rally despite still trading about 21% below its late-January record near $5,600, while silver remains nearly half below its $121.67 peak. The strong move in miners such as Agnico Eagle, Newmont and Barrick suggests equity flows are following spot higher, which could amplify upside if macro data continue to point toward a less restrictive Fed path.