Gold, silver see decent gains as markets expect Sept. Fed rate cut

NEW YORK (August 4) Gold and silver prices are higher near midday Monday, supported by notions of lower U.S. interest rates coming in September, following a downbeat U.S. economic report released last Friday that fell squarely into the camp of the monetary policy doves. December gold was last up $22.90 at $3,422.50. September silver prices were last up $0.406 at $37.325.

President Trump late Friday fired the head of the agency that produces the monthly jobs figures after the Friday morning jobs report showed hiring slowed in July and was much weaker in May and June than previously reported. The U.S. stock market sold off Friday following the dour U.S. jobs data, which changed the trajectory of the economic discussion to one of a Fed rate cut now being likely at the September FOMC meeting. Trump said he will announce a new Federal Reserve governor and a new BLS jobs data statistician in the coming days.

U.S. stock indexes are solidly higher at midday, which as a competing asset class with the safe-haven metals is somewhat tempering gains in gold and silver.

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