Gold climbed on Wednesday, nearing record highs as traders sought shelter from lingering uncertainty in the US economy.
Spot gold was trading at $4,339 an ounce by 17:45 GMT.
US equities faced broad selling pressure throughout the day, weighed down by softer-than-expected economic readings and ongoing concerns over high valuations, particularly in technology stocks. Investors have been reassessing risk positions following mixed signals from the labour market, which is showing signs of slowing even as payrolls increased modestly in November. The unemployment rate rose to a four-year high, adding to market anxiety.
Purchasing managers index data for December came in below forecasts, and delayed October retail sales indicated a slowdown, leaving traders cautious. The combination of weaker economic indicators and the lingering effects of the recent federal government shutdown has increased demand for assets such as gold.
The Federal Reserve’s return to Treasury purchases, dubbed “quantitative easing,” has further reinforced expectations of additional rate cuts. Market participants are now closely eyeing Thursday’s consumer price index release for November, seeking clues on inflation and potential Fed action.
For now, gold remains firm, trading just below record levels, supported by investor caution as equities continue to waver.