Gold and Silver Prices Surge on Weak Jobs Data

Gold and silver prices surged on Thursday following a combination of weak labor market data and a shift in Federal Reserve rhetoric. Comex gold rose 2.72% to $4,499.70 per troy ounce, while silver increased 3.45% to $67.180.

Christopher Waller, a Governor of the Federal Reserve, stated he is inclined to keep interest rates steady provided there are no inflation shocks from upcoming data. This dovish position contrasts with the previous hawkish stance taken by Fed Chair Kevin Warsh during the Jackson Hole Symposium. The price rally was further supported by a report from American Data Processing showing the U.S. private sector added only 38,000 jobs in August, the lowest growth since January.

Market volatility coincides with escalating geopolitical conflict as the United States and Iran engage in a second round of military strikes. Iran claims to have hit bases in Kuwait and the United Arab Emirates, though U.S. officials deny any successful hits to Gulf bases. The Strait of Hormuz remains closed, with shipping data showing a decline in vessel transits.