Pure gold bar models photographed in Shanghai, China, March 15, 2026.
Photo | The Future of Publishing | Getty Images
Gold prices rose more than 2% on Wednesday following softer-than-expected jobs data and comments from Federal Reserve Chairman Kevin Warsh who suggested inflation risks had eased.
Gold stain rose 2.1% to $4,089.49 an ounce after hitting its lowest level since November on Tuesday, when the yellow metal also posted a quarterly loss. US gold futures August deliveries rose 1.6% to $4,103.10.
“Gold is rebounding nicely this morning; a lower-than-expected ADP helped set the stage, and Fed Chairman Warsh’s comments about lower inflation pushed yields lower and gave a sharp boost to the dormant gold market,” said Tai Wong, an independent metals trader.
“Gold might have created at least a short-term base if we didn’t get a sharp payroll report tomorrow,” Wong added.
Ahead of Thursday’s nonfarm payrolls report, ADP’s national employment report showed private sector employment rose by 98,000 jobs last month after an unrevised gain of 122,000 in May. Economists polled by Reuters had forecast private sector employment would increase by 118,000.
Meanwhile, Warsh said inflation expectations and inflation risks have weakened in recent weeks, although he reiterated that the Fed is committed to reducing inflation to its 2% target.
While gold is generally seen as a hedge against inflation, higher interest rates tend to reduce the attractiveness of this non-yielding metal.
Traders currently estimate the likelihood of an interest rate hike in September at about 67%, according to CME’s FedWatch tool. On the geopolitical front, the United States and Iran held technical talks in Doha on Wednesday, seeking to agree on the flow of shipping through the Strait of Hormuz and secure a lasting ceasefire, an Iranian official said.
Among other metals, spot silver added 2.8% to $60.24 an ounce and palladium strengthened 1.6% to $1,223.68.
Platinum rose 3.1% to $1,599.36 after hitting its lowest level since November earlier in the session.
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