Gold prices rose in Wednesday’s Asian trading, supported by a cautious tone across global markets as investors increasingly turned to safe-haven assets ahead of key U.S. employment data, seeking clearer signals on the Federal Reserve’s next policy move.
Spot gold gained 0.9% to $3,966.56 per ounce, while U.S. gold futures edged 0.3% higher to $3,974.10. This recovery follows a sharp 2% drop in the previous session the steepest decline in over a week.
The recent movement stems from growing concerns over inflated stock valuations, especially after warnings from Morgan Stanley and Goldman Sachs executives about the potential for a significant correction in equity markets amid the tech driven rally. These remarks triggered a broad sell off on Wall Street, which quickly spilled over into Asian markets.
This heightened uncertainty has renewed interest in gold as a traditional safe haven during volatile periods. However, the metal remains under pressure from a strong U.S. dollar and fading expectations of a rate cut in December, following Federal Reserve Chair Jerome Powell’s comments suggesting policymakers may pause further monetary easing.
With the dollar holding near a three-month high, gold has become more expensive for non U.S. buyers, limiting its upside. Meanwhile, easing U.S. China tensions has reduced safe-haven inflows, keeping price action confined within a narrow range.
Among other metals, silver inched up 0.4% to $47.49 per ounce, while platinum rose 0.2% to $1,542.75. Copper futures on the London Metal Exchange advanced 0.4% to $10,698.20 per ton, and U.S. copper futures gained 0.9% to $4.97 per pound.
Investors now await the release of the U.S. ADP National Employment Report later today, which takes on added significance amid delayed official data due to the partial U.S. government shutdown. The report is expected to offer crucial insights into labor market trends and the Federal Reserve’s monetary outlook in the coming weeks.
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