Gold and Silver Prices Surge on Easing Inflation Fears
Gold and silver prices surged on Thursday as investors reacted to softer US labor data, a weaker dollar, and lower Treasury yields. The metal price rally was driven by easing inflation fears and hopes for an end to the Federal Reserve's tightening cycle.
The spot gold price rose 4.11% to $4,244.00 per ounce, while spot silver prices gained 4.16% to $61.88 per ounce. The move higher in precious metals was supported by a decline in US private payrolls and annual wage growth for job stayers.
However, the market remains uncertain about the Fed's next moves, with traders still pricing a roughly 59% probability of a 25-basis-point hike at the September meeting. The 10-year Treasury yield was near the 4.6% area, and the 2-year yield was near 4.2%, signaling continued caution from investors.
The Strait of Hormuz situation remains a key geopolitical variable for gold, oil, and risk assets. Iran and Oman agreed on shipping route coordinates, but an interim deal is still elusive due to political and operational challenges.