Gold and Silver Rally as Weak Payrolls Cut Fed Hike Pressure

Gold and silver prices surged on Friday after the US jobs report revealed a decline in nonfarm payrolls by 23,000. The unemployment rate remained near 4.1%, prompting markets to reassess the Federal Reserve's interest rate hike plans for September.

The weaker-than-expected labor data led to a decrease in Treasury yields, with the 10-year yield falling to 4.64% from 4.67%. This move softened the US dollar and eased pressure on the Fed to raise rates again.

Spot gold prices rose 2.39% to $4,340.60 an ounce, while spot silver prices increased by 3.19% to $63.35. The Federal Reserve's decision to maintain its target range at 3.50-3.75% was made by a 9-3 vote.

Chair Kevin Warsh emphasized the Fed's inflation mandate during the post-meeting press conference, stating, 'There is only a target.'