Gold prices rose over 1 percent on Wednesday, lifted by investors avoiding riskier assets despite stronger-than-expected private payrolls data in the US.
Spot gold was up 1.2 percent at USD3,977.94 per ounce by 10:57 a.m. ET (1557 GMT). US gold futures for December delivery rose 0.7 percent to USD3,989.80 per ounce.
“Gold and silver are modestly higher despite a stronger-than-expected ADP private payrolls report, which is the best broad jobs indicator given the shutdown. This should give comfort to bulls who were surprised that metals fell along with risky assets yesterday,” said Tai Wong, an independent metals trader. US private employment increased by 42,000 jobs last month, above Reuters estimate of a 28,000 rise, the ADP employment report showed on Wednesday. A strong jobs market typically reduces likelihood of rate cuts and can even keep rates higher for longer.
Stocks fell on Wednesday, retreating from record highs on fears equity markets may have become overstretched.
“Some safe-haven demand has surfaced at mid-week as the global stock markets are still a bit shaky amid ideas US stocks are overvalued and that there is an AI stock bubble,” said Jim Wyckoff, senior analyst at Kitco Metals, in a note.
Meanwhile, the US Federal Reserve cut interest rates last week, with Chair Jerome Powell indicating it could be the final reduction this year.
Traders now see a 62 percent chance of another rate cut in December, down from over 90 percent last week.
Non-yielding gold tends to do well in a low-interest-rate environment and during times of economic uncertainty.
Eyes will also be on a US Supreme Court hearing later in the day on the legality of President Donald Trump’s tariffs, after a lower court ruled the administration had overstepped authority by imposing levies under an emergency law.
Elsewhere, spot silver gained 2.2 percent to USD48.14 per ounce, platinum rose 1 percent to USD1,551.40 and palladium climbed 2 percent to USD1,419.
