Gold and Silver Prices Surge Amid Softer US Labor Data
New York, August 5th - The price of gold surged to new highs as US labor data and Treasury yields softened. Spot gold was trading near $4,244.00 an ounce, up 4.11% on the session, while spot silver was trading at $61.880, up 4.16%. The latest US data showed July private payrolls rose by 44,000, below the 75,000 consensus.
The combination of softer labor data and lower Treasury yields cooled aggressive Fed-hike pricing, supporting gold prices. However, services activity remained in expansion, with the ISM Services PMI at 54.1, business activity at 59.1, new orders at 57.2, and employment back in contraction at 47.4.
The Federal Reserve backdrop remains restrictive, with a 9-3 vote to hold the federal funds target range at 3.50% to 3.75%. Traders still priced a roughly 59% probability of a 25-basis-point hike at the September meeting.