Gold Slides After U.S. Data Miss; Silver Hits 12-Year High Amid Tariff Talks

Gold prices declined sharply on Thursday despite earlier strength driven by weak U.S. economic data and Federal Reserve rate cut expectations. Meanwhile, silver surged to a fresh 12-year high, outperforming gold as trade developments between the U.S. and China took center stage.

📉 Gold Price Falls as Traders Digest Trump-Xi Trade Talks

August 2025 gold futures dropped by $24.10 (-0.71%) to settle at $3,356 per ounce, retreating from the $3,380 mark reached earlier in the session. The pullback came after a 90-minute discussion between President Trump and President Xi Jinping aimed at easing trade tensions and normalizing economic ties.

While gold initially benefited from weak U.S. economic data—fueled by expectations of a dovish Fed stance—profit-taking pressure emerged ahead of Friday’s Nonfarm Payrolls (NFP) report. Traders remained cautious despite signs of a slowing U.S. economy, including:

• ADP Payrolls: Just 37,000 jobs added in May (lowest since March 2023)
• Weekly Jobless Claims: Rose to 247,000, the highest since October 2024
• U.S. Trade Deficit: Narrowed significantly to $61.6B from March’s $140B

Despite the retreat, gold remains in a consolidation phase near record levels, still supported by long-term macroeconomic uncertainty and geopolitical risk.

🪙 Silver Shines with Breakout to 12-Year High

In contrast, silver surged as it gained $1.15 (+3.34%) on the day, driven by strong momentum and industrial demand optimism. The metal’s weekly gain now exceeds 8%, following intraday highs that marked the highest price level in over a decade.

The gold-to-silver ratio, currently near 94, suggests potential further upside for silver as it continues to outperform. This ratio is still 1.5% above pre-tariff levels seen in early April, signaling ongoing divergence between the two precious metals.

🔍 Market Outlook Ahead of NFP Report

Investors are now laser-focused on Friday’s U.S. jobs data, which could shape the Federal Reserve’s policy trajectory for the remainder of 2025. A continued slowdown in employment may further support precious metals, especially silver, which is exhibiting strong technical momentum.

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✅ Key Takeaways

• Gold Price (Aug 2025): Fell to $3,356, reversing from near $3,380 highs
• Silver Price: Surged, hitting a 12-year high with an 8% weekly gain
• Gold-to-Silver Ratio: Holds near 94, suggesting bullish silver outlook
• Macro Focus: Trump-Xi trade talks, U.S. job data, and Fed rate cut expectations

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