Gold prices bounced back on Wednesday in Asian markets as worries over global financial stability pushed investors toward safe-haven assets. Traders are keeping a close eye on upcoming U.S. private payroll data, which could influence future interest rate decisions.

Spot gold climbed 0.9% to $3,966.56 per ounce, while U.S. Gold Futures edged up 0.3% to $3,974.10. This follows a nearly 2% drop in the previous session, which marked a one-week low for bullion.

Why Gold Is Gaining:
Concerns grew after the CEOs of Morgan Stanley and Goldman Sachs warned about a potential sharp correction in stock markets, pointing to overvalued tech stocks and “bubble-like” conditions. These warnings triggered losses on Wall Street and dragged Asian equities lower, boosting demand for gold as a safe store of value.

What’s Holding Gold Back:

• Hopes for another U.S. Fed rate cut this year have dimmed after Chair Jerome Powell suggested a pause in easing.

• A strong U.S. dollar makes gold more expensive for overseas buyers.

• Easing U.S.-China tensions have reduced some safe-haven flows.

Even with these limits, gold remains a key choice for cautious investors as markets navigate uncertainty. All eyes are now on U.S. payroll numbers for the next market direction.

By Md Golam Rabbani