US Jobs Report Disappoints: Solely 22,000 New Positions Added
The August jobs report delivered a shock to markets this morning. The US financial system added simply 22,000 jobs final month — far beneath the 75,000 economists anticipated. Even worse, the unemployment fee ticked as much as 4.3%, its highest degree since 2021.
However right here’s the actual kicker: June’s numbers have been revised down from a acquire of 14,000 to a lack of 13,000. That marks the primary adverse jobs month since December 2020, ending one of many longest employment enlargement streaks on document. The message is evident — the financial system is slowing significantly as companies in the reduction of on hiring and shoppers cut back spending. This miss has despatched shockwaves by monetary markets, forcing merchants to reassess their Fed expectations.
Fed Price Reduce Now a Finished Deal After Jobs Miss
If there was any doubt concerning the Federal Reserve’s subsequent transfer, right this moment’s jobs report erased it. Treasury yields plummeted to five-month lows as merchants rushed to cost in a September fee minimize. The CME FedWatch device now reveals a 90% likelihood of a quarter-point minimize when the Fed meets September 16-17 – up from simply 67% yesterday.
Why ought to valuable metals buyers care? Price cuts are rocket gas for gold and silver. Decrease charges make these non-yielding belongings extra engaging in comparison with bonds and financial savings accounts. Additionally they are inclined to weaken the greenback, making metals cheaper for worldwide consumers. Plus, when the Fed cuts charges, it’s typically signaling financial worries forward – precisely when buyers flock to protected havens like gold.
And right this moment’s motion reveals that flight to security is already underway…
Gold Nears $3,600 in Relentless March Greater
Gold bulls are having their second. The yellow metallic surged to $3,593 per ounce this morning, crushing earlier data and lengthening what’s turn out to be a spectacular 36% rally in 2025. Three weeks of almost uninterrupted good points have merchants questioning simply how excessive this run can go.
The timing couldn’t be higher. With a Fed fee minimize now extraordinarily probably for September, gold is positioned completely to profit from looser financial coverage. The dear metallic continues to show its position as a protected haven throughout turbulent instances. However gold isn’t the one valuable metallic making waves right this moment.
Silver Outshines Gold with 43% Rally This Yr
Whereas gold grabs the headlines, silver has been the actual star performer. The white metallic broke above $41 an oz for the primary time since 2011, climbing to $41.40 this morning. That’s a shocking 43% acquire for silver in 2025, with three months left to go within the 12 months.
Silver’s outperformance is sensible — it advantages from the identical elements driving gold (fee cuts, greenback weak point, safe-haven demand) however with further leverage from its smaller market dimension. When valuable metals rally, silver typically leads the cost.
The energy in each metals is catching the eye of central banks worldwide.
El Salvador Makes Historical past with First Gold Buy Since 1990
In a strategic transfer to diversify its reserves, El Salvador’s central financial institution simply purchased 13,999 ounces (397 kg) of gold price $50 million. That is the first gold buy in 35 years, rising the nation’s gold reserves by greater than 31%. Whereas the nation continues to carry roughly 6,283 Bitcoin price round $720 million, this gold buy indicators a balanced method to order administration.
This transfer carries further weight coming simply months after El Salvador’s IMF deal in February. It indicators that even crypto-friendly nations acknowledge gold’s enduring worth as a reserve asset. Don’t be shocked if different nations comply with swimsuit as world financial uncertainty persists.
