A surprisingly weak U.S. jobs report has propelled gold prices to unprecedented levels, reinforcing the precious metal’s status as a haven asset. The unemployment rate jumped to 4.6% in November, marking its highest point in four years. This development coincided with a sharp slowdown in job creation and significant downward revisions to prior months’ data, leading markets to price in a more aggressive path for Federal Reserve interest rate cuts.

Key Data Points from the Report

• The U.S. unemployment rate climbed to 4.6%, up from 4.2%.
• Only 64,000 new non-farm payrolls were added in November.
• October’s job figures were dramatically revised from a gain to a net loss of 105,000 positions.
• Gold has firmly held above the $4,300 per ounce threshold.
• Silver has outperformed, posting a staggering 120% gain for the year 2025.

A Deteriorating Labor Picture

The details of the latest employment data paint a concerning economic portrait. The addition of a mere 64,000 jobs in November fell far short of expectations. More alarmingly, the substantial revision to October’s numbers—turning a previously reported gain into a six-figure loss—suggests underlying weakness was present earlier than initially thought.

A significant structural warning signal emerged in the surge of involuntary part-time workers, which increased by 909,000 to 5.5 million. This trend, where businesses retain staff but reduce hours, is often viewed as a precursor to a more pronounced economic slowdown.

Mounting Pressure on the Federal Reserve

This data significantly intensifies pressure on the U.S. central bank. Following its third consecutive rate cut on December 10, market participants are now firmly anticipating further monetary easing in January 2026. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold and typically exert downward pressure on the U.S. dollar, creating a favorable environment for bullion.

Should investors sell immediately? Or is it worth buying Gold?

Other economic indicators also showed weakness. Retail sales stagnated with 0.0% growth in October, dragged down by a 1.6% contraction in the automotive sector. Furthermore, the manufacturing Purchasing Managers’ Index (PMI) declined to 51.8 points in December.

Silver Outshines with Explosive Gains

While gold trends steadily upward, silver’s performance has been even more dynamic. The white metal is currently trading at €55.78 per troy ounce, reflecting a daily increase of 2.78%. Priced in U.S. dollars, it remains firmly above $63 after hitting a record high of $64.66 last Friday. Its approximate 120% year-to-date advance in 2025 significantly outpaces gold’s rally.

Institutional Sentiment Turns Bullish

Market sentiment remains overwhelmingly positive. Reports indicate that Société Générale has positioned itself with maximum exposure to a continuation of the rally. Goldman Sachs has issued a 2026 price target for gold as high as $4,900. A broader shift from dollar-denominated assets into hard assets is underway, fueled by geopolitical uncertainty and growing skepticism toward digital currencies, which continues to bolster demand for physical precious metals.

As long as U.S. economic data fails to signal a surprising reversal, the path for gold and silver appears tilted upward. The combination of rising unemployment, faltering consumer spending, and the prospect of additional interest rate cuts creates a near-perfect macroeconomic backdrop for precious metals.

Ad

Gold Stock: Buy or Sell?! New Gold Analysis from December 19 delivers the answer:

The latest Gold figures speak for themselves: Urgent action needed for Gold investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 19.

Gold: Buy or sell? Read more here...