Gold prices rose more than 2% on Wednesday, recovering from recent lows after weaker-than-expected US jobs data and Federal Reserve Chair Kevin Warsh’s comments that inflation risks have eased. Spot gold climbed to $4,071.04 per ounce, while US futures also gained.
The move was supported by softer ADP employment data, which strengthened expectations that the Fed may not need aggressive tightening. However, traders still await key non-farm payrolls data for further direction. Lower bond yields also boosted demand for the non-yielding metal.
Geopolitical tensions and easing inflation concerns added to safe-haven demand, while other precious metals including silver, platinum and palladium also advanced.