A weaker U.S. labor market reinforced these expectations. Nonfarm payrolls for August showed subdued job creation and a rise in unemployment, adding to evidence that growth is cooling.
“The Fed’s challenge is balancing inflation control with mounting risks to employment,” said a Johannesburg-based commodities analyst.
Silver, like gold, drew inflows on renewed safe-haven demand. Tensions escalated after Israel conducted an airstrike in Doha, Qatar, targeting Hamas leadership. The development followed months of regional instability, with military activity also reported in Syria, Lebanon, and Yemen.
In Europe, Poland raised its air defenses in response to heavy Russian attacks near its border, underscoring risks of conflict spillover.
Political uncertainty added another layer of volatility. France’s government faced turbulence after Prime Minister Sébastien Lecornu resigned following a failed confidence vote, while Japan’s Prime Minister announced his intention to step down. These developments, analysts note, have contributed to a cautious global investment climate.
Despite these tailwinds, gains in precious metals were capped by a modest rebound in the U.S. dollar and record highs on Wall Street. The S&P 500 and Nasdaq both notched new peaks on Tuesday, buoyed by stronger corporate earnings, which drew some flows away from defensive assets.
