Gold and Silver Surge as July Payrolls Surprise Markets

Spot gold and silver prices surged in early U.S. trading on Friday as a surprise decline in July payrolls pulled Treasury yields lower and reduced near-term Fed hike expectations.

The nonfarm payrolls fell by 23,000 in July, with the unemployment rate remaining at 4.1%. This led to a drop in the 10-year Treasury yield from 4.67% to 4.6%, while Fed funds futures cut the implied probability of a September hike to 44.0% from 54.7%.

The Strait of Hormuz remains a key geopolitical risk factor for gold, with tensions between Iran and Oman still unresolved. The strait previously handled one-fifth of traded oil and natural gas, and Brent crude has traded as high as $113 during the conflict.