Gold and Silver Rally as Weak Payrolls Temper Fed Rate Hike Bets

The labor market data, which also saw the unemployment rate climb to 4.2% and previous months' figures revised downward by 60,000 jobs, provided the catalyst for a safe-haven rally. Spot gold climbed 0.96% to $4,216.80 an ounce, while silver rose 1.45% to $61.750. Investors quickly recalibrated, pushing the 10-year Treasury yield toward the 5.2% mark as the prospect of aggressive monetary tightening lost momentum.

Beyond the domestic labor picture, geopolitical tensions in the Strait of Hormuz continue to complicate the inflationary outlook. While crude exports have largely stabilized through alternative logistics, refined-product flows remain constrained, keeping freight and diesel costs elevated. This leaves the Federal Reserve navigating a contradictory landscape: softening labor signals pulling yields downward, balanced against persistent, oil-linked inflationary pressures. With Brent crude holding near $101.12 a barrel, traders are now looking toward upcoming manufacturing reports and the October 14 CPI release to determine if this precious metals recovery can sustain its technical momentum.