Gold prices edged higher in Asian trading on Wednesday, rebounding after a sharp sell-off, as the United States dollar eased from fresh 3-month highs.
By 3:40 pm AEDT (4:40 am GMT), spot gold was up 1% at US$3,971.03 per ounce, recovering some of Tuesday’s 1.8% decline as traders looked for direction ahead of key U.S. economic data releases.
The precious metal found support as investors sought stability amid continued volatility in equity markets.
A renewed sell-off in global tech shares, particularly those tied to artificial intelligence, extended from Wall Street into Asia, prompting a cautious recovery in bullion.
Gold’s rebound came as the U.S. dollar entered a phase of consolidation after surging on safe-haven demand during Tuesday’s global risk sell-off.
A softer greenback typically boosts demand for dollar-denominated assets like gold.
Traders remained cautious after the Federal Reserve’s measured approach to monetary easing last week tempered expectations for another rate cut in December.
According to the CME Group FedWatch Tool, markets are pricing in a 73.9% chance of a December rate reduction.
Looking ahead, attention turns to the upcoming U.S. ADP employment report and ISM Services PMI data, both due later Wednesday, which could shape expectations for the Fed’s next policy decision and provide fresh momentum for gold prices.
