Gold prices climbed in Asian trading on Wednesday, recovering from the previous session’s sharp losses as renewed risk aversion across global markets boosted demand for safe-haven assets. Investors are now awaiting key U.S. labor market data for further clues on the Federal Reserve’s policy outlook.
By 00:47 ET (05:47 GMT), spot gold rose 0.9% to $3,966.56 per ounce, while U.S. gold futures gained 0.3% to $3,974.10. The yellow metal had fallen nearly 2% on Tuesday, hitting a one-week low.
Investor Anxiety Lifts Gold
Gold’s rebound came as investors grew increasingly uneasy about the possibility of a correction in global equity markets. Concerns were stoked after the CEOs of Morgan Stanley and Goldman Sachs warned of potential “bubble-like” dynamics in the recent tech-led rally and hinted at the risk of a sharp market pullback.
Their comments triggered heavy selling on Wall Street overnight, with losses spilling into Asian trading hours and prompting a flight to safety. The shift in sentiment reignited demand for gold, long seen as a hedge against volatility and market stress.
However, the broader outlook for bullion remains constrained by diminished expectations for additional U.S. interest rate cuts this year. Market participants have largely priced out the possibility of a December cut after Fed Chair Jerome Powell suggested last week that policymakers may pause further easing.
A strong U.S. dollar — holding near a three-month high — continues to cap gold’s gains, making the metal more expensive for international buyers. Meanwhile, the recent easing of U.S.-China trade tensions has reduced safe-haven inflows, tempering upward momentum in gold prices.
Focus Turns to U.S. Jobs Data
Attention is now shifting to the ADP National Employment Report due later on Wednesday, which could offer insight into the strength of the labor market and guide expectations for the Fed’s next moves. With official U.S. data releases delayed by the ongoing government shutdown, the private payroll report is expected to carry extra weight among investors.
Other Metals Edge Higher
Broader metals markets also gained modestly as a softer U.S. dollar lent support. Silver futures advanced 0.4% to $47.49 per ounce, while platinum futures rose 0.2% to $1,542.75 per ounce.
On the industrial side, benchmark copper futures on the London Metal Exchange increased 0.4% to $10,698.20 a ton, and U.S. copper futures climbed 0.9% to $4.97 per pound, aided by improved risk sentiment in commodity markets.
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