Gold fell 1.6% to about $4,110 and silver dropped 4.3% to $59.70 over the past week as a weak U.S. jobs report and a renewed U.S.-Iran flare-up pulled precious metals in opposite directions. A rally on rate-cut hopes reversed once oil and inflation fears returned, and traders now watch upcoming CPI data for the Fed's next move.
Gold gave back its early-week gains, closing the week down 1.3% to 1.6% from its July 5 starting point, while silver ended down roughly 4.3% near $59.70. The two metals spent the holiday-shortened week whipsawing between a soft labor market and a fresh geopolitical shock.
A jobs miss lifts metals, briefly
Spot gold started the week near $4,175 an ounce, and futures pushed as high as $4,215.50 on Monday. The move followed a Bureau of Labor Statistics report showing just 57,000 nonfarm payrolls added in June, well below the roughly 110,000 economists expected. The BLS also cut its April and May totals by a combined 74,000, and unemployment ticked up to 4.2%.
Traders read the weak print as a step toward Federal Reserve rate cuts, and the dollar weakened. Silver touched $62.80 an ounce and gold traded above $4,200 as the rally built.
Iran shock flips the trade
The rally did not hold. President Trump stated on July 8 that a fragile ceasefire with Iran was over, and renewed strikes tied to shipping in the Strait of Hormuz followed. Oil prices jumped, inflation expectations rose, and Treasury yields climbed with them. Gold futures fell from an open near $4,106.50 to an intraday low of $4,032.50 that day, a drop of close to 2%.
Silver fell harder, closing down 4.55% at $58.54 on COMEX. The same day, the Federal Open Market Committee released June minutes showing a divided committee still focused on inflation. That kept the odds of a September rate hike near 50% in market pricing, adding to the pressure on both metals.
Why silver took the bigger hit
Silver moves more than gold because more than half of its demand comes from industrial uses like electronics, solar panels, and electric vehicles. When growth fears rise alongside inflation fears, silver gets hit from two sides at once. The gold-to-silver ratio widened into the 67 to 70 range by the weekend, marking silver's relative underperformance.
Physical buyers cushioned the drop. Premiums in Dubai, Shanghai, and India firmed during the dip, and analysts at USAGOLD and Bullionvault described the pattern as bargain hunting near key price levels. Gold tested support near the $4,000 to $4,100 range without breaking down.
What comes next
Markets now watch the next Consumer Price Index report for a clearer read on inflation and whether the Fed's September meeting delivers a cut, a hike, or no change. Gold remains down sharply from highs above $5,300 reached earlier in 2026, though the July pullback stayed shallow next to that broader correction. A weaker labor market pulls the metals one way toward lower rates; the widening Iran conflict pulls them the other toward higher oil, inflation, and yields.
Source: Bitcoin.com News
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