The shift in outlook followed a softer US jobs report and data showing initial jobless claims rose to 226,000 last week, the highest since early July. “Labor market softness reinforces the case for the Fed to pivot sooner,” one commodities strategist noted, suggesting any pullback in gold could be shallow if policy easing materializes.
Silver Consolidates as Profit-Taking Emerges
Silver also traded softer, with prices easing from recent highs as investors locked in profits. The metal, often benefiting from both industrial and safe-haven demand, saw headwinds from the firmer dollar and stronger risk sentiment in equity markets.
Still, ongoing geopolitical uncertainty and expectations of US rate cuts continue to underpin its longer-term outlook.
Analysts note that silver’s dual role in the green energy sector, through its use in solar panels and electronics, may keep investment demand resilient, especially as governments accelerate renewable energy targets.
Central Bank Buying and Policy Uncertainty Offer Long-Term Support
In a notable supportive trend, China’s central bank extended its gold-buying streak to nine consecutive months in July, reinforcing institutional confidence in bullion. Central bank purchases, alongside rising geopolitical and trade frictions, add a stabilizing layer to gold’s fundamentals.
Recent US tariff hikes on Indian imports and new duties targeting semiconductors and pharmaceuticals have reignited concerns of broader trade disruptions, sustaining interest in safe-haven assets.