Gold, Silver Rally on Weak US Jobs Report

The US jobs report for July showed a decline in nonfarm payrolls by 23,000, while the unemployment rate remained steady at 4.1%. This unexpected weakness in labor data has eased pressure on the Federal Reserve to raise interest rates again in September.

As a result, gold and silver prices rallied on Friday, with spot gold trading near $4,340.60 an ounce, up 2.39%, and spot silver at $63.350, up 3.19%. The weak payrolls print also led to lower Treasury yields, with the 10-year yield falling to 4.64% from 4.67% just before the release.

The dollar index was weaker after the jobs report, which added to the bullish sentiment for gold and silver. However, technical analysts note that spot gold bears' next near-term downside price objective is a break below $4,300.00, with deeper targets at $4,200.00 and then $4,180.00.