Gold prices climbed on Wednesday as bargain hunters returned to the market after bullion fell to a near one-week low in the previous session. Investors are now awaiting key U.S. private payroll data for clues on the Federal Reserve’s next policy move.
Spot gold rose 0.9% to $3,965.49 per ounce by 05:47 GMT, recovering from Tuesday’s 1.5% slide that pushed prices to their lowest since October 30. U.S. gold futures for December delivery gained 0.4% to $3,974.10 per ounce.
The U.S. dollar hovered just below the three-month highs hit earlier this week, capping gold’s upside but not enough to deter safe-haven demand.
“It’s just bargain buying and a broader risk-off sentiment across financial markets supporting safe-haven demand for gold,” said Jigar Trivedi, Senior Analyst at Reliance Securities.
Asian equities extended overnight losses from Wall Street as concerns over stretched valuations dampened investor confidence.
Trivedi added that gold could face further pressure “down to $3,900 if the upcoming ADP employment data surprises on the higher side,” as expectations of additional rate cuts fade.
The Federal Reserve lowered interest rates last week, with Chair Jerome Powell indicating it might be the final cut for 2025. According to the CME FedWatch Tool, traders now price in a 69% chance of another rate cut in December, down sharply from over 90% before Powell’s remarks.
Ongoing uncertainty over a potential U.S. government shutdown, which has halted several key data releases, is also pushing investors to rely on private reports like the ADP National Employment Report for economic signals.
Non-yielding assets like gold tend to outperform when interest rates are low or during times of economic uncertainty. Bullion touched an all-time high of $4,381.21 on October 20 but has since slipped roughly 10%.
Among other precious metals, silver gained 1.1% to $47.62 per ounce, platinum rose 0.2% to $1,537.94, while palladium remained steady at $1,397.59.
