Warsh's Jackson Hole Speech Looms as Gold and Silver Prices Plummet

Gold and silver prices continued their downward trend on Thursday, hitting new lows for the week as US economic data released ahead of Fed Chair Kevin Warsh's Jackson Hole speech suggested a strong jobs market and a widening trade deficit.

The USA's trade deficit soared to $118 billion in July, the largest since March 2025, fueling concerns that the US dollar may be overvalued. Meanwhile, jobless benefit claims came in lower than forecast, echoing this summer's 57-year lows and indicating a robust economy.

Gold prices plummeted by 2.6% to $4580 per troy ounce, while silver dipped below $68 for the third time this week. The market is pricing 'no change' as a 2-in-3 shot for next month's Federal Reserve rate decision, with longer-term bond yields holding firm at new multi-decade highs.

Metals Focus notes that markets have turned cautious ahead of Warsh's speech at Jackson Hole, while analyst Joseph Wang suggests that reaffirming the Fed's commitment to PCE inflation data until it hits 2% could lower rates in the bond market. The tech-heavy Nasdaq index opened 1.0% higher on Thursday despite Nvidia's strong quarterly earnings report.