Commodities
Precious Metals Surge on Weak US Employment Data
Gold and silver prices have surged recently, with gold hitting a 10-week high of around $4,435 per ounce. The rally is supported by weaker US employment data, reduced Federal Reserve rate hike expectations, and continued central bank gold purchases.
The decline in US nonfarm payrolls has lowered expectations of a September Federal Reserve rate hike. This decrease in the opportunity cost of holding non-yielding gold makes it more appealing to investors.
Silver has seen stronger gains compared to gold, with Comex silver rising more than 11% during the week. The metal's dual role as a precious metal and industrial commodity, used in solar panels and electric vehicles, contributes to its stronger performance.