Gold prices rose on Wednesday after U.S. labour market data showed that the unemployment rate climbed in November, reinforcing expectations that the Federal Reserve may cut interest rates in the future and weakening the U.S. dollar. This shift made bullion more attractive to investors seeking a hedge against economic uncertainty.
Spot gold edged up about 0.4% to roughly $4,318 an ounce early in the session, while U.S. gold futures also gained. The increase in the unemployment rate to about 4.6% last month exceeded economists’ forecasts and pressured both the dollar and U.S. Treasury yields, boosting demand for non-yielding assets like gold.
The softer labour data comes after the Federal Reserve delivered its third rate cut of the year, and traders are now anticipating additional cuts in 2026. A weaker dollar typically makes gold cheaper for overseas buyers, further supporting prices. Investors are also awaiting key U.S. inflation reports due later this week, which could influence expectations for future monetary policy.
Silver also strengthened alongside gold, adding to gains in precious metals markets as traders reacted to the U.S. economic indicators and interest-rate outlook.
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