Gold prices rebounded in Asian trading on Wednesday as a broader risk-off mood across global financial markets lifted bullion’s safe-haven demand, while traders await U.S. private payroll data for cues on future interest rate cuts.

Spot gold rose 0.9% to $3,966.56 per ounce by 00:47 ET (05:47 GMT), while U.S. Gold Futures edged up 0.3% to $3,974.10.

The metal declined nearly 2% in the previous session, hitting a one-week low.

Market bubble fears boost gold’s haven demand

Investor nerves were rattled after the CEOs of Morgan Stanley and Goldman Sachs flagged the possibility of a sharp equity market drawdown, pointing to richly valued stocks and “bubble” like dynamics in the tech-led rally.

Their remarks led to steep overnight losses on Wall Street, also dragging Asian equities lower on Wednesday.

Market jitters revived demand for gold, traditionally viewed as a safe store of value during times of financial stress. 

Despite Wednesday’s uptick, bullion remains under pressure from waning bets on another U.S. Federal Reserve rate cut this year. Traders have scaled back expectations for a December cut after Chair Jerome Powell signaled last week that policymakers may pause further easing.

A resilient U.S. dollar, which hovered near a three-month high, has also weighed on gold by making it more expensive for overseas buyers.

At the same time, easing U.S.-China tensions have reduced safe-haven inflows, limiting gold’s upside momentum in recent sessions.

Investors are now turning their attention to the U.S. ADP National Employment Report due later on Wednesday for fresh clues on the labor market and future Fed policy moves. With official economic releases delayed due to a partial U.S. government shutdown, the ADP data is expected to take on added significance.

Metal markets edge up

Other precious and industrial metals edged higher on Wednesday, as a slight fall in the U.S. dollar aided gains.

Silver Futures rose 0.4% to $47.49 per ounce, while Platinum Futures edged up 0.2% to $1,542.75/oz.

Benchmark Copper Futures on the London Metal Exchange gained 0.4% to $10,6980.20 a ton, while U.S. Copper Futures climbed 0.9% to $4.97 a pound.