FX.co ★ Gold Trims Gains as Markets Weigh US Data and Fed Outlook

Gold saw its initial rise taper off on Wednesday, settling just below the $5,000 threshold as investors analyzed new US economic data and its potential effects on Federal Reserve policy. This analysis comes in the wake of President Trump's nomination of Kevin Warsh as the next Fed chair. With significant labor-market reports postponed this week, the focus shifted to the ADP report, which indicated private-sector job growth falling short of predictions. Conversely, the ISM services PMI exceeded expectations, highlighting enduring strength in the sector. The bullion had previously surged over 6% in a single session—the largest daily increase since 2008—after bargain hunters capitalized on an earlier significant decline. The demand for gold as a safe haven was further bolstered by geopolitical tensions following the US military's downing of an Iranian drone near an aircraft carrier in the Arabian Sea. Despite this, the White House confirmed that talks between the US and Iran are still set to occur on Friday.