Gold and Silver Pull Back — Smart Money Buys When Others Wait 
Gold price drops below $3,350 on Friday as new U.S. labor data revealed stronger-than-expected job growth in May. The Nonfarm Payrolls report showed 139,000 new jobs added, beating forecasts of 130,000. Although the unemployment rate held steady at 4.2%, the surprising job gains gave the U.S. Dollar a temporary lift. This eased pressure on the Federal Reserve to cut interest rates soon — typically a bullish factor for gold. However, earlier labor market data this week pointed to underlying weakness, leaving the broader policy outlook uncertain.
Thursday’s phone call between Chinese and U.S. officials helped ease short-term fears of a deepening trade war, but global investors remain cautious as tariff uncertainties and broader trade tensions persist.
The U.S. move to double tariffs on steel and aluminum imports to 50%—enforced on Wednesday—has sparked backlash from major trading partners, including India, Canada, the European Union, and Mexico, all of whom have threatened to retaliate.
As trade negotiations continue into next week, the risk of prolonged disputes looms large. If talks break down or tensions escalate, the resulting strain on the global economy could trigger equity market declines. In such a scenario, gold price drops may reverse as investors seek safety in precious metals, driving renewed demand for gold as a traditional safe-haven asset.
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