Gold and silver prices moved higher on Wednesday after weaker-than-expected U.S. private-sector employment data pushed Treasury yields lower and slightly reduced expectations for a Federal Reserve rate hike in September.

At the time of writing, spot gold was up 1.36% at around $4,386.70 per ounce, while spot silver gained 1.95% to $65.20 per ounce.

Weak ADP Data Supports Gold

According to ADP, U.S. private employers added just 38,000 jobs in August, below expectations and the weakest reading since January.

The Federal Reserve’s Beige Book also showed:

• Modest economic growth

• Very slight employment gains

• Moderate increases in prices

Following the data, the probability of a September Fed rate hike slipped from around 67% to 64%.

U.S. Treasury yields also eased:

• 2-year yield: around 4.383%

• 10-year yield: around 4.793%

Lower yields helped reduce pressure on gold and silver, which do not generate interest income.

Gold Rebounds Sharply From Session Lows

Gold fell as low as $4,281.70 per ounce earlier in the session before recovering back above $4,380.

Key technical levels to watch include:

Resistance

$4,422 → $4,487 → $4,573 per ounce

Support

$4,319.60 → $4,230.51 → $4,222.93 per ounce

Silver also rebounded from around $63.20, but still needs to reclaim $66.87 to strengthen its short-term bullish momentum.

High Oil Prices Remain a Key Headwind

Tensions around the Strait of Hormuz continue to keep oil prices elevated.

Brent crude rose about 1% to $95.63 per barrel, while WTI remained above $90 per barrel.

For gold, this creates a mixed environment:

Geopolitical risk → supports safe-haven demand

but at the same time,

Higher oil prices → increase inflation pressure → limit the Fed’s ability to turn dovish

Next Focus: Nonfarm Payrolls

Although weaker ADP data helped cool rate-hike expectations, the broader policy outlook has not changed decisively.

Investors are now focused on:

• Weekly jobless claims

• ISM Services

• The August Nonfarm Payrolls report on Friday

The jobs report will be a key factor in determining whether expectations for a September Fed rate hike remain elevated.

This article is for informational and market commentary purposes only and should not be considered investment advice.

Source: Kitco