Silver also benefited, with investors adding exposure amid growing conviction that easing monetary policy will sustain safe-haven flows. The metal continues to trade in positive territory, supported by a backdrop of dovish Fed expectations.
Labor Market Weakness Reinforces Safe-Haven Demand
Recent labor data has added weight to the case for policy easing. The ADP employment report showed US private-sector hiring slowed to 54,000 in August, well below both the revised July figure of 106,000 and consensus forecasts of 65,000.
At the same time, weekly jobless claims rose to 237,000, exceeding expectations of 230,000 and pointing toward further cooling in employment conditions.
“Markets are increasingly comfortable with the idea that labor market weakness will give the Fed room to cut rates,” said one senior commodities strategist. Still, the ISM Services PMI came in stronger than expected at 52, signaling resilience in parts of the economy.
Trade Uncertainty and Fed Officials Add Complexity
Beyond economic data, trade policy developments have fueled safe-haven buying. The latest tariff-related rulings underscored the uncertain policy landscape, reinforcing demand for gold and silver as hedges against volatility.
Comments from Federal Reserve officials reflected the delicate balancing act ahead. New York Fed President John Williams projected GDP growth of just 1.25% to 1.5% this year while warning of rising unemployment risks.