Gold and Silver Rebound as Soft ADP Data Eases Rate Hike Bets

Gold and silver prices climbed in mid-session Wednesday trading after softer U.S. private payrolls data cooled expectations for an imminent Federal Reserve rate hike. Spot gold advanced 1.36% to $4,386.70 per ounce, while silver gained 1.95% to $65.20. The ADP report showed just 38,000 jobs added in August, the weakest reading since January.

U.S. equities closed higher, but European markets fell amid rising energy costs. The 10-year Treasury yield eased to 4.79% and the dollar softened. Brent crude held near $95.63 a barrel amid tensions in the Strait of Hormuz.

Technically, gold must clear $4,422 for further gains, while silver eyes $66.87. Friday’s payrolls report will likely set the next direction for metals.