Gold and silver prices moved higher on Monday after weak U.S. employment data increased the chances that the Federal Reserve might cut interest rates in September. Investors saw the disappointing jobs report from last Friday as a clear sign that the economy is losing momentum, making a rate cut more likely.
The rise in metal prices was also helped by a weaker U.S. dollar and a drop in U.S. Treasury yields. Both of these factors usually make gold and silver more attractive to investors. By midday, December gold futures were up $22.90, trading at $3,422.50, while September silver gained $0.406 to reach $37.325.
The situation became more intense after President Trump removed the official in charge of the government’s monthly jobs report. The decision came after data revealed that job growth in July was slow and that previous months’ numbers were also revised downward. This caused concern in the markets and gave more reason to believe the Federal Reserve might take action soon.
Interestingly, the U.S. stock markets rebounded on Monday, despite Friday’s sell-off. Stocks often compete with gold and silver for investor attention, so rising stock prices can sometimes slow down gains in precious metals.
At the same time, crude oil prices weakened after the OPEC+ alliance decided to increase production. Lower oil prices usually indicate reduced inflation fears, which can affect gold demand. Still, the declining dollar helped balance things out, making gold and silver more appealing globally.
From a trading perspective, gold looks relatively strong in the short term. The next challenge for gold is to move above the July high of $3,509.00. If it fails to do so, the support levels to watch are $3,397.90 and $3,350.00. Similarly, silver also holds a slight advantage, although its upward momentum has weakened. Its next goal is to surpass resistance at $38.51, while support is seen around $36.00.
Overall, traders are now looking ahead to the Federal Reserve’s meeting in September, expecting a policy shift that could continue to support precious metals in the coming weeks.
