Gold Surges as Oil Drops and Weak U.S. Data Hits Markets

Gold prices surged during Wednesday’s North American session, with silver also posting strong gains, driven by weaker-than-expected U.S. labor data, falling oil prices, and renewed geopolitical uncertainty. At the time of writing, spot gold is trading near $4,694 per ounce, up 2.77%, while silver has jumped حوالي 6.23% to $77.35.

U.S. economic data played a key role in supporting precious metals. The ADP report showed private-sector employment rose by just 109,000 in April, missing market expectations of 118,000. This weaker reading signals a slowdown in labor market momentum and strengthens expectations that the Federal Reserve may adopt a more accommodative stance. As a result, Treasury yields declined and the U.S. dollar weakened, both of which provided additional support for gold.

Meanwhile, oil markets experienced a sharp decline. Reports suggesting that Washington and Tehran are nearing a framework to reopen tanker routes in the Persian Gulf reduced part of the geopolitical risk premium in crude prices. Lower oil prices, combined with easing war concerns, helped fuel a simultaneous rally in both equities and safe-haven assets—an unusual but not unprecedented market dynamic.

U.S. equity markets also closed higher. The S&P 500 gained 1.5% to reach a new record high, while the Dow Jones rose 1.2% and the Nasdaq climbed 2%. Falling energy prices and optimism around geopolitical stabilization, alongside continued strength in large-cap tech stocks, were key drivers behind the rally.

On the geopolitical front, uncertainty remains elevated. Reports indicated that U.S. Central Command disabled a tanker near an Iranian port, while markets continue to assess the likelihood of a broader agreement to stabilize regional energy flows. This mix of declining oil prices and persistent geopolitical tension has created conditions where both risk assets and safe havens are rising together.

From a technical perspective, gold is extending its rebound after a recent correction. A break above the $4,722–$4,750 resistance zone could open the path toward $4,800–$4,850. On the downside, a move below $4,620 may trigger further declines toward $4,576 and $4,540. For silver, a breakout above the $78–$79.50 range could target the $80 level, while a drop below $75.50 may increase bearish pressure.