Gold Prices Hit Weekly Lows Amid US Economic Strength

Gold and silver prices declined to weekly lows on Thursday following US economic data that showed a stronger-than-expected jobs market and a soaring trade deficit. The market downturn comes as investors await the first Jackson Hole speech by Kevin Warsh, the new Chair of the Federal Reserve. While market participants generally expect interest rates to remain unchanged next month, the US government has doubled bond buybacks to lower borrowing costs as bond yields reach multi-decade highs.

In the equity markets, the Nasdaq index rose 1.0% following strong quarterly earnings from Nvidia. On the diplomatic front, CIA Director John Ratcliffe visited Moscow to warn the Kremlin against attacking NATO allies and to emphasize sanctions against nations trading with Iran. Simultaneously, the government of Qatar is in discussions with Iran regarding mine-clearing operations to secure tanker traffic in the Strait of Hormuz.