In global markets, spot gold rose 1.3% to $3,983.89 per ounce.
According to Tai Wong, an independent metals trader, “Gold and silver are modestly higher despite a stronger-than-expected ADP private payrolls report. This should give comfort to bulls who were surprised that metals fell along with risky assets yesterday.”The latest ADP report showed that US private employment increased by 42,000 jobs in October, above economists’ estimates of 28,000. A robust labour market typically reduces the urgency for the U.S. Federal Reserve to continue cutting interest rates, a factor that can cap gains in non-yielding assets like gold.
However, broader market caution has lent support to safe-haven assets. “Some safe-haven demand has surfaced as global stock markets remain 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.
The Fed recently reduced policy rates, and while Chair Jerome Powell signalled that it might be the final cut this year, traders still see a 63% chance of another reduction in December, down from over 90% a week ago. Lower rates generally enhance the appeal of gold and silver by reducing the opportunity cost of holding them.
–With Reuters inputs
