Gold and Silver Pull Back — Smart Money Buys When Others Wait 
Daily News Nuggets | September 5th, 2025 — Here’s what you need to know about today’s most important economic and precious metals news:
US Jobs Report Disappoints: Only 22,000 New Positions Added
The August jobs report delivered a shock to markets this morning. The US economy added just 22,000 jobs last month — far below the 75,000 economists expected. Even worse, the unemployment rate ticked up to 4.3%, its highest level since 2021.
But here’s the real kicker: June’s numbers were revised down from a gain of 14,000 to a loss of 13,000. That marks the first negative jobs month since December 2020, ending one of the longest employment expansion streaks on record. The message is clear — the economy is slowing considerably as businesses cut back on hiring and consumers reduce spending. This miss has sent shockwaves through financial markets, forcing traders to reassess their Fed expectations.
Fed Rate Cut Now a Done Deal After Jobs Miss
If there was any doubt about the Federal Reserve’s next move, today’s jobs report erased it. Treasury yields plummeted to five-month lows as traders rushed to price in a September rate cut. The CME FedWatch tool now shows a 90% probability of a quarter-point cut when the Fed meets September 16-17 – up from just 67% yesterday.
Why should precious metals investors care? Rate cuts are rocket fuel for gold and silver. Lower rates make these non-yielding assets more attractive compared to bonds and savings accounts. They also tend to weaken the dollar, making metals cheaper for international buyers. Plus, when the Fed cuts rates, it’s often signaling economic worries ahead – exactly when investors flock to safe havens like gold.
And today’s action shows that flight to safety is already underway…
Gold Nears $3,600 in Relentless March Higher
Gold bulls are having their moment. The yellow metal surged to $3,593 per ounce this morning, crushing previous records and extending what’s become a spectacular 36% rally in 2025. Three weeks of nearly uninterrupted gains have traders wondering just how high this run can go.
The timing couldn’t be better. With a Fed rate cut now extremely likely for September, gold is positioned perfectly to benefit from looser monetary policy. The precious metal continues to demonstrate its role as a safe haven during turbulent times. But gold isn’t the only precious metal making waves today.
Silver Outshines Gold with 43% Rally This Year
While gold grabs the headlines, silver has been the real star performer. The white metal broke above $41 an ounce for the first time since 2011, climbing to $41.40 this morning. That’s a stunning 43% gain for silver in 2025, with three months left to go in the year.
Silver’s outperformance makes sense — it benefits from the same factors driving gold (rate cuts, dollar weakness, safe-haven demand) but with extra leverage from its smaller market size. When precious metals rally, silver often leads the charge.
The strength in both metals is catching the attention of central banks worldwide.
El Salvador Makes History with First Gold Purchase Since 1990
In a strategic move to diversify its reserves, El Salvador’s central bank just bought 13,999 ounces (397 kg) of gold worth $50 million. This is the first gold purchase in 35 years, increasing the country’s gold reserves by more than 31%. While the country continues to hold approximately 6,283 Bitcoin worth around $720 million, this gold purchase signals a balanced approach to reserve management.
This move carries extra weight coming just months after El Salvador’s IMF deal in February. It signals that even crypto-friendly nations recognize gold’s enduring value as a reserve asset. Don’t be surprised if other countries follow suit as global economic uncertainty persists.
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