Gold and silver prices rose slightly despite a stronger-than-expected ADP private-use employment report the most comprehensive employment report in the context of a government shutdown. This partly reassures buyers, who were surprised by the precious metal's decline along with yesterday's risky assets," said independent metals trader Tai Wong.
The ADP report showed the US private sector added 42,000 jobs last month, exceeding Reuters' forecast of 28,000. A strong job market often makes it possible to cut interest rates lower and can keep interest rates higher for longer.
US stocks fell from record highs on Wednesday due to concerns that the market had increased too much.
A part of safe-haven demand returned in midweek as the global stock market was still rocky, amid concerns that US stocks were overvalued and were forming an AI bubble, wrote senior analyst Jim Wyckoff of Kitco Metals.
Last week, the US Federal Reserve cut interest rates, and Chairman Jerome Powell said this could be the last cut this year.
Traders now rate the probability of another interest rate cut in December at 63%, down from more than 90% last week.
Gold - a non-yielding asset - often benefits in a low interest rate environment and when the economy is unstable.
Investors also turn their attention to the US Supreme Court hearing on the same day, considering the legality of the tariffs imposed by President Donald Trump, after lower-level courts said that the government at that time exceeded its authority when citing emergency laws.
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