Gold Dips from Peak, Central Banks Keep Buying

Daily News Nuggets | September 4th, 2025 — Here’s what you need to know about today’s most important economic and precious metals news: 

Gold Dips From Record High As Eyes Turn To Jobs Data 

Gold slipped 0.8% to $3,530.69 an ounce yesterday after touching an all-time high of $3,578.50. The pullback was simple profit-taking after that spectacular run, with silver dropping alongside its yellow cousin. 

But here’s what traders are really watching: July’s job openings fell sharply, strengthening the case for a Fed rate cut on September 17. The weakness in the labor market adds to growing evidence that the economy is cooling, which typically prompts the Fed to ease monetary policy. Lower rates boost gold’s appeal since the metal doesn’t pay interest, making it more competitive against yield-bearing assets. 

But the weakness extends far beyond just one data point… 

Global Slowdown Deepens Rate-Cut Expectations 

U.S. private payrolls unexpectedly slumped in August with just 54,000 jobs added, while jobless claims rose and layoffs surged. Across the Atlantic, UK construction hit its longest slump since early 2020. These trends are hammering the dollar and Treasury yields as markets price in more aggressive Fed easing. 

For gold investors, this is the perfect storm: weakening labor markets reinforce the safe-haven narrative while falling yields make the zero-interest metal increasingly attractive. Even the Fed’s own data confirms these troubling trends…

Businesses Brace for Slowdown as Job Growth Stalls 

The Fed’s latest Beige Book paints a stark picture: job growth has collapsed to just 35,000 jobs per month since May, while 20% of firms expect demand to decline over the next six months. 

The report reveals growing strains on Main Street. Kansas City households are downgrading to “inferior” goods and swapping vacations for staycations. Philadelphia businesses warn that wages no longer keep pace with prices — especially as companies adjust to tariffs. Meanwhile, firms are quietly shrinking through attrition, using return-to-office policies and AI automation to reduce headcount without layoffs. 

This economic uncertainty comes as Trump ramps up pressure on the Fed, even attempting to fire Governor Lisa Cook while rushing to confirm loyalist Stephen Miran before the September 16-17 meeting. Markets are betting on a quarter-point rate cut — a move that could provide relief for struggling businesses and boost precious metals. But while markets wobble, one group of buyers remains unfazed…

Gold Dethrones Treasuries in Central Bank Vaults 

Central banks’ appetite for gold appears unstoppable. These massive institutional buyers now hold 36,000 tons of gold worth $4.5 trillion — significantly more than their $3.5 trillion Treasury stash. They’ve been buying at a record pace of over 1,000 metric tons annually for three straight years, double the previous decade’s average. 

In a historic shift, gold now represents 27% of global reserves compared to Treasuries’ 23% — the first time since 1996 that the yellow metal has outranked U.S. government bonds. Gold has even surpassed the euro to become the world’s second-largest reserve asset after the dollar. And Wall Street is taking notice…

Goldman Sachs: Gold Could Hit $5,000 

In a bold call turning heads on Wall Street, Goldman Sachs warns that political pressure on the Federal Reserve could send gold soaring to $5,000 an ounce. Their base case? $4,000 by mid-2026. 

The bank says investors are increasingly fleeing Treasuries for gold, spooked by threats to Fed independence. This shift represents a fundamental change in how institutional investors view risk — they now fear the stability of traditional government bonds more than gold’s volatility. It’s a striking reminder of gold’s role as the ultimate hedge against institutional uncertainty. 

Smart money isn’t waiting for the next crisis — central banks are already positioning for a world where gold matters more than Treasuries. The question for investors: Are you?

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