Gold, Silver Soar as Weak US Jobs Report Shifts Fed Calculus
The US economy's weak July jobs report had an unexpected effect on gold and silver prices. The Bureau of Labor Statistics reported that the country shed 23,000 jobs in July, missing the consensus estimate by a wide margin.
As a result, the Federal Reserve's dual mandate reasserted itself, shifting its calculus away from hiking interest rates. With lower rate expectations reducing the opportunity cost of holding physical gold, demand increased and prices rose.
The People's Bank of China added approximately 20 tonnes of gold in July 2026, extending its streak to 21 consecutive months and marking its largest single-month purchase since October 2023.
Silver outperformed gold on Friday by a clear margin, up 3.6% versus gold's 2.8%, compressing the gold-silver ratio to approximately 67:1.