Gold traded around $4,080 an ounce on Wednesday after climbing nearly 2% in the previous session, as investors continued to monitor Middle East uncertainties and rising oil prices and their impact on inflation and interest rates.
President Donald Trump downplayed the chances of near-term talks with Iran and warned of additional strikes, lifting oil prices.
Iran-backed Houthi rebels in Yemen also disrupted shipping through the Red Sea, while a series of attacks on the Caspian Pipeline Consortium terminal along Russia’s Black Sea coast added to supply concerns.
Meanwhile, ADP data showed US private employers added an average of 16,500 jobs per week over the four weeks ending July 4, down from an average weekly gain of 19,250 in the prior four-week period, marking a fourth straight slowdown in hiring.
Markets widely expect the Federal Reserve to leave interest rates unchanged at next week’s meeting, while pricing in more than a 55% chance of a rate hike in September.