Strong US Jobs Data Sparks Sell-Off in Gold and Silver
The gold and silver markets are experiencing a sharp sell-off on Friday following a stronger-than-expected August employment report in the US. The jobs data showed that nonfarm payrolls rose by 162,000 in August, far exceeding expectations of around 53,000 to 55,000. This has lifted Treasury yields and firmed the US dollar, reviving expectations that the Federal Reserve could raise interest rates later this month.
The employment report has also shifted market positioning against precious metals, with spot gold trading near $4,402.40 an ounce, down 1.56%, while spot silver is trading at $65.590, down 1.87% on the session. The reversal of fortunes for gold and silver comes after a Waller-led pause trade supported the metal's price Thursday.
Market analysts are now focusing on whether next week's Consumer Price Index (CPI) report will keep inflation risk high enough to validate the Fed-hike repricing. The technical damage to gold is not as severe as Tuesday's selloff, but the setup has shifted from recovery to retest. Bulls need yields and the dollar to fade quickly or risk another push toward lower support ladders.