“The jobs number was strong, but the cooling in wage inflation gives the Fed some flexibility,” said a senior macro strategist at a New York-based investment bank. The unemployment rate ticked down to 4.1%, adding to the view that while the labour market is resilient, inflationary pressure may be easing.
Policy Risk and Fiscal Pressure Add to Gold’s Appeal
Growing concerns over fiscal policy and trade tensions also underpin gold’s resilience. Markets are watching closely as the U.S. administration signals new tariff measures ahead of the July 9 trade deadline, creating fresh uncertainty in global supply chains.
Additionally, the Congressional Budget Office recently projected that new tax and spending policies could add $3.4 trillion to the national debt, straining long-term U.S. economic fundamentals.
This combination of policy risk and rising fiscal pressure is fueling demand for hedging assets. “With deficits widening and trade policy in flux, gold continues to play a key role in portfolio risk management,” noted one commodities analyst.
Silver Maintains Gains Near $36.88 in Cautious Trade
Silver also traded slightly higher, last seen at $36.87. The metal has held its ground within a rising price channel, supported by a firm 50-day EMA. Analysts view silver as benefiting from both its industrial use case and its safe-haven characteristics in uncertain macro environments.
As U.S. markets reopened after the Independence Day holiday, trading volumes remained light. Still, both gold and silver are poised to finish the week on a stronger note, with sentiment bolstered by a complex mix of robust data, policy uncertainty, and global economic concerns.
