Gold prices rebounded in Asian trading on Wednesday as investors sought safety amid renewed volatility across global equity markets. The move came ahead of key U.S. employment data expected to shed light on the Federal Reserve’s next policy steps.
By 00:47 ET (05:47 GMT), spot gold advanced 0.9% to $3,966.56 per ounce, while U.S. gold futures gained 0.3% to $3,974.10. The metal had dropped nearly 2% in the previous session, marking its lowest level in a week.
Flight to Safety Boosts Bullion
The rebound in gold followed a wave of risk aversion triggered by warnings from the CEOs of Morgan Stanley and Goldman Sachs, who cautioned that equity valuations were becoming excessive and resembled “bubble-like” conditions. Their comments sparked heavy selling on Wall Street overnight, dragging Asian markets lower and prompting investors to rotate into defensive assets such as gold.
The renewed appetite for safe havens offered some relief to bullion after its recent decline. However, analysts noted that gold’s upside potential remains limited by fading bets on further U.S. interest rate cuts. Traders have scaled back expectations for a December cut after Federal Reserve Chair Jerome Powell indicated last week that the current easing cycle could be nearing its end.
The dollar’s strength — with the greenback hovering near a three-month high — has also constrained gains by making gold more expensive for foreign buyers. Meanwhile, a cooling in geopolitical tensions between the U.S. and China has eased the urgency for haven positioning, further capping momentum.
Markets Await ADP Payrolls Report
Attention now turns to the U.S. ADP National Employment Report, due later Wednesday, for signs of how the labor market is holding up amid slowing economic growth. With official government data delayed by the ongoing shutdown, the private-sector payroll figures will likely play a greater role in shaping investor expectations for future Fed action.
Broader Metals Market Steadies
Other precious and base metals also firmed modestly as the dollar softened slightly. Silver futures added 0.4% to $47.49 per ounce, while platinum futures edged 0.2% higher to $1,542.75 per ounce.
Among industrial metals, benchmark copper futures on the London Metal Exchange rose 0.4% to $10,698.20 a ton, while U.S. copper futures climbed 0.9% to $4.97 per pound, supported by a mild recovery in risk appetite and hopes for improving demand in China.