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Investing.com-- Gold prices rebounded Wednesday as a broader risk-off mood across global financial markets lifted bullion’s safe-haven demand, while traders await U.S. private payroll data for cues on future interest rate cuts.
At 08:20 ET (13:20 GMT), Spot gold rose 0.4% to $3,976.75 per ounce and U.S. Gold Futures edged up 1% to $3,969.33 an ounce.
Market bubble fears boost gold’s haven demand
Investor nerves were rattled after the CEOs of U.S. banking giants Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS)}} flagged the possibility of a sharp equity market drawdown, pointing to richly valued stocks and “bubble” like dynamics in the tech-led rally.
Their remarks led to steep overnight losses on Wall Street, to be followed by losses in both Asia and Europe on Wednesday.
Market jitters revived demand for gold, traditionally viewed as a safe store of value during times of financial stress.
Falling rate cut hopes weigh
Despite Wednesday’s uptick, bullion remains under pressure having declined nearly 2% in the previous session, hitting a one-week low, as traders scaled back expectations for a December cut after Chair Jerome Powell signaled last week that policymakers may pause further easing.
A resilient U.S. dollar, which hovered near a three-month high, has also weighed on gold by making it more expensive for overseas buyers.
At the same time, easing U.S.-China tensions have reduced safe-haven inflows, limiting gold’s upside momentum in recent sessions.
Metal markets mixed
Other precious and industrial metals traded in a mixed fashion Wednesday.
Silver Futures rose 0.3% to $47.415 per ounce, while Platinum Futures dropped 1% to $1,535.10/oz.
Benchmark Copper Futures on the London Metal Exchange fell 0.1% to $10,648.80 a ton, while U.S. Copper Futures slipped 0.3% to $4.933 a pound.
Ayushman Ojha contributed to this article