The Labor Market Cracks — and Gold Roars Back to Life

Last week, something big happened.

In fact, it was a blaring siren out of the U.S. economy. 

A shift. 

A crack in the pavement. 

A thunderous “uh-oh” from the very center of the American labor market.

The July jobs report dropped — and let me tell you, it wasn’t pretty.

Only 187,000 jobs were created last month — far fewer than the 240,000 economists were expecting. Even worse, revisions slashed the previous two months by a combined 49,000 jobs. 

Labor force participation? Flatlined. 

Wage growth? Tepid. 

Unemployment? Creeping higher.

Suddenly, the Fed’s big, bad “higher for longer” mantra is starting to look shaky. The data is whispering — maybe even screaming — that the American consumer is exhausted, the job market is softening, and the era of punishingly high interest rates might be over.

And for those of us who understand what comes next — for those of us who remember our history, who study cycles, who live and breathe markets — there’s only one conclusion to draw…

It’s time to buy more gold.

Gold and the Great Fed Pivot: A Love Story

Let’s be clear: The relationship between interest rates and gold isn’t just a theory — it’s an ironclad law of financial physics.

When rates go up, gold tends to languish. Why? Because gold doesn’t yield anything. It’s not a bond. It’s not a dividend-paying stock. So when Treasury yields rise, parking money in boring old U.S. debt starts looking mighty attractive.

But when the Fed cuts rates?

That’s when gold becomes the hero of the story.

Cutting rates stokes inflation. It weakens the dollar. It lowers the opportunity cost of holding gold. And when that happens — when investors start to sense that the central bank is going soft, that inflation might run hot again, that the Fed is willing to sacrifice the dollar to save the market — gold doesn’t just rise.

It explodes.

Let me show you:

• In 2001, the Fed began a series of cuts following the dot-com crash. Gold soared from $255 an ounce to over $700 by 2006.
• In 2008, during the 2008 global financial crisis, the Fed slashed rates to zero and fired up the money printers. Gold didn’t just protect wealth — it became the trade of the decade, rocketing from $700 to over $1,900 by 2011.
• In 2020, the Fed responded to COVID with another zero-rate policy. Gold again surged past $2,000 — a historic new high. Even today, as the economy still has a hangover from the COVID lockdowns and record-spending, gold is hovering around all-time highs around $3,500.

Every time the Fed pivots from tightening to easing, gold doesn't just outperform — it leads.

This Jobs Report Was the Starting Gun

So let’s connect the dots.

The Fed has been trying to orchestrate a “soft landing” for over a year. They were hiking interest rates in the fastest, most aggressive cycle since the 1980s — trying to bring inflation down without sending the economy into a tailspin.

But July’s job numbers show something else entirely:

• Private-sector hiring is cooling. The service sector — the last stronghold of job growth — is finally showing fatigue.
• Unemployment is ticking up, now hovering at 4.1%.
• Wage growth is stalling, despite supposed “tight” labor conditions.

This isn’t just a slowdown. It’s the first visible fracture in the economic armor.

If this trend continues — and it will — the Fed will be forced to cut.

Wall Street knows this. Futures markets are already pricing in multiple rate cuts by early 2026 — and some analysts now believe the first cut could come as soon as this fall if unemployment jumps faster than expected.

That’s a neon-green light for gold.

And if you’ve been sitting on the sidelines, waiting for the perfect moment to get in?

This is it.

Why Inflation Isn’t Done With Us Yet

Now, you might be wondering — if the economy is weakening, won’t inflation just keep falling?

It’s a fair question. And the answer is: not necessarily.

In fact, cutting rates now — before inflation is fully subdued — could lead us right back into a dangerous cycle.

Remember, the Fed doesn’t control the supply side of inflation. It can’t make oil cheaper. It can’t produce more copper, or lithium, or food. It can’t fix the Red Sea shipping crisis or restart shuttered factories in China. It can’t fight the costs pushed on the economy that’s baked into a post-pandemic, decarbonizing, reshoring world.

All it can do is crush demand — and when it eases up, that demand comes back.

Which means we could be looking at the return of stagflation — low growth, persistent inflation, and monetary easing all at once.

Sound familiar? It should. It’s exactly what made gold soar in the 1970s.

From 1971–1980 — during a decade of geopolitical chaos, energy shocks, and runaway inflation — gold went from $35 an ounce to over $800.

A 23x move.

And I believe we’re now in the early innings of a modern version of that story.

The world is still awash in debt. The U.S. deficit is ballooning. Geopolitical tensions — BRICS vs. the West, China vs. Taiwan, Russia vs. NATO — are escalating. And fiat currencies, led by the U.S. dollar, are being called into question by allies and adversaries alike.

It’s not just about the Fed anymore. It’s about trust. It’s about protection. It’s about owning an asset that doesn’t need a central bank’s permission to exist.

That’s gold.

The Smartest Money Is Already Moving In

Let me let you in on a little secret Wall Street doesn’t want you to know.

While CNBC talks up Nvidia and Meta every day, the real insiders are quietly stocking up on gold.

Central banks — especially outside the U.S. — are buying gold at a record pace. In 2022 and 2023, they bought more gold than at any other time in modern history. And the first half of 2025 is already shaping up to beat those records.

Who’s buying?

• China
• India
• Russia
• Turkey
• The Middle East
• And even sovereign wealth funds like the one in Singapore.

They’re not buying ETFs. They’re not speculating. They’re moving physical bullion — by the metric ton — into vaults.

Why?

Because they see the same writing on the wall: A weaker dollar. A pivoting Fed. A fracturing world order.

And now, with the U.S. labor market slipping into contraction, the final domino is about to fall.

Your Move

Let me be blunt.

If you’re still hoping the Fed can engineer a “Goldilocks” landing — where growth stays solid, inflation vanishes, and the stock market keeps rallying — you’re dreaming.

The cracks are spreading.

The Fed is out of ammo. They can’t raise rates again without crashing the entire system. And now they may be too late to cut rates in time to avoid a slowdown.

That’s a perfect storm.

And gold is the lifeboat.

I’ve been pounding the table on this for months going all the way back to 2022 — in Wealth Daily, in our white papers, and in every fireside chat I’ve had with serious investors.

Gold isn’t just an inflation hedge. It’s a confidence hedge.

And right now, confidence is teetering.

We’re not in 2010 anymore. This isn’t the QE era. This is something bigger — a revaluation of money itself. Bitcoin opened the door. NatGold is about to kick it off the hinges. But the one asset that always leads the charge is gold.

Final Thought

Gold has survived every empire. It’s outlasted every war, crash, and regime. It’s never defaulted. It doesn’t require a counterparty. It doesn’t need a CEO. It doesn’t go bankrupt.

And now, as the Fed teeters and the economy softens, gold is getting ready to do what it’s always done when the printing presses start to hum again…

It’s going to run.

Don’t miss it.

Because by the time Powell rings the bell and makes that first rate cut official?

The gold trade might already be halfway gone.

Buy the dips.

Stack the bars.

Prepare for the pivot.

This is the moment gold investors have been waiting for.

And this time… you have the chance to be early.

Get to the good, green grass first…

The Prophet of the Profit,

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