Gold prices rose on Wednesday as investors engaged in bargain hunting following a decline to nearly a one-week low in the previous session, while market attention focused on upcoming US employment data for hints about future interest rate cuts.
Spot gold gained 0.8 percent, reaching $3,961.85 an ounce by 03:46 GMT, after dropping more than 1.5 percent on Tuesday to its lowest level since October 30. December US gold futures also rose 0.2 percent to $3,970.10 an ounce.
The dollar remained near its three-month high, and Asian stocks experienced early losses amid concerns over overvalued equities.
Jigar Trivedi, chief currency analyst at Reliance Securities, said, “It’s just bargain hunting with wider risk aversion supporting demand for gold as a safe haven. Gold is under pressure due to declining expectations of another interest rate cut this year and could test $3,900 if ADP data is strong.”
The Federal Reserve cut interest rates last week, with Chairman Jerome Powell signaling that this could be the last reduction of 2025. According to CME FedWatch, the market now prices a 69 percent chance of a December rate cut, down from over 90 percent before Powell’s remarks.
With the US government shutdown delaying official data releases, investors are closely watching unofficial reports such as the ADP employment report due later Wednesday.
Other precious metals also saw gains: silver rose 1.2 percent to $47.68 an ounce, platinum gained 0.1 percent to $1,537.10, and palladium climbed 0.2 percent to $1,394.75.
