Gold prices surging higher as U.S. economy loses 23k jobs in July

[libertybele]

Gold prices surging higher as U.S. economy loses 23k jobs in July


The gold market is surging higher as the U.S. economy lost jobs in July, significantly missing expectations. The Bureau of Labor Statistics said the economy lost 23,000 jobs in July, versus expectations for a gain of 85,000. The spot gold price last traded at $4,367.80 an ounce, up 3% on the day. Gold prices are once again surging higher, climbing to $4,350 an ounce as the U.S. economy lost jobs last month, significantly missing expectations. The Bureau of Labor Statistics reported on Friday that U.S. nonfarm payrolls fell by 23,000 in July. The jobs number missed consensus forecasts, as economists had anticipated job gains of around 85,000. This is the second contraction in the labor market this year. Although the labor market contracted last month, the unemployment rate fell to 4.1%, down from June’s reading of 4.2%. Economists were expecting to see an unchanged reading. However, some analysts note that the unemployment rate is dropping as Americans start to leave the workforce. The gold market is seeing significant buying momentum in its initial reaction to the disappointing labor market data. Analysts said gold investors are now anticipating that the Federal Reserve will be limited in raising rates this year, even in the face of persistent inflation fears, capping real yields. Spot gold last traded at $4,363.70 an ounce, up nearly 3% on the day. The disappointing economic data has pushed gold prices into positive territory for the year. Not only were jobs lost last month, but the report also downwardly revised the May and June numbers. The report said June’s employment data was revised down to 20,000, compared to the initial estimate of 57,000. At the same time, May’s numbers were revised lower to 63,000 jobs from the prior estimate of 129,000. Along with weak headline data, the report also noted muted wage growth. Average hourly earnings increased by 0.1%, or 2 cents, last month to $37.62. Economists were expecting to see a 0.3% increase. Bond markets continue to price in a rate hike in September. The CME FedWatch Tool shows markets see a roughly 50/50 chance of a rate hike in September. However, economists expect that expectations will start to be pared back as investors continue to digest the data. “The US rate hike odds are simply smashed by the US NFP number, and anyone who has been thinking that rate hikes are coming has had a real reality check. The action and reflection of this are clearly shown in the gold price action, which has moved higher like a rocket,” said Waleed Said, Technical Analyst at GivTrade. “Basically, the data has brought good news for gold and for the markets, but for the Fed, this is another huge problem, especially when inflation is this high. The Fed Chairman now will have to do some serious thinking to keep inflation in check.”

https://www.kitco.com/news/article/2026-08-07/gold-prices-surging-higher-us-economy-loses-23k-jobs-july

[DefiantMassRINO]

Gold was over $5,000/oz earlier this year.

[libertybele]

Gold was over $5,000/oz earlier this year.

IMO I think we'll see gold at that price again soon. 

[DefiantMassRINO]

When gold was around $2,000/oz, I had planned to spend $500/month to accumulate some gold coins.  But, gold rocketed to $3,000, $4,000, and $5,000 before I could get that rolling.  Silver went higher than it did in 2008/2009.  Even platinum went up too much for me to buy.

Gold prices, denominated in dollars, may decrease if there is a liquidity shortage (cash crunch) in credit and capital markets.

There is a $h!tl0@d of Government, public, and private debt out there.

Some of the AI financing is 'creative' and 'incestuous', reminiscent of the 2008/2009 Financial Crisis and Enron (2000-ish).

I'm starting to hear about 'Credit Default Swaps' on corporate debt, ala 2007/2008, on CNBC again.  Credit Default Swaps (CDS) is a speculative derivative investment vehicle that is essently a bet that a company will default on its debt.  One of the issues with CDS's in 2008/2009, the issuers (aka the bookies) did not have sufficient funds - cash/assets/liquidity/credit - to pay out in full.

This exponentially increased the velocity of the liquidity (cash/dollars) death spiral that caused credit markets to seize.  'Mark To Market' accounting was the afterburner in the deflationary death spiral because it rapidly made lending instiutions technically insolvent when the collateral that backed their loans was worth less than the amount of the loans (aka underwater).

I am not someone who can predict and time markets.  I look the tea leaves and evaluate the possibilities, and I tend to be wrong more than I am right.

In a liquidity crunch (cash shortage), if you need to sell gold, there may not be a counterparty to who can buy it from you with whichever currency you are asking for.

As an investor, gold, silver, platinum, palladium only have currency value if someone can buy it from you using your requested currency when you want to, or you need to, sell it.  Essentially, this is the point at which the economy ceases to function, and Governments feel compelled to intervene.

I use precious metals as a vector of diversification that helps me sleep at night and to have something of value that is outside of the Federal Reserve Banking System and beyond the (electronic) reach of the US Treasury Department.

Other than my employee/employer contributions to my 401-K, I am hoarding cash in 3 month FDIC insured bank certificates of deposit in anticipation of another credit crunch / liquidity shortage within the next two years.

IMO I think we'll see gold at that price again soon.

[cato potatoe]

Glad I quit my office job and became an undertaker.  There is a never ending supply of gold teef.