Gold settles lower as dollar climbs

Gold bars

Gold prices fell at settlement on Wednesday as the US dollar strengthened following economic data that showed stronger-than-expected growth in the second quarter of 2025.

Most-active December gold futures dropped 0.8%, or $28.4, to close at $3,352.8 per ounce.

Data from the US Commerce Department showed gross domestic product rose 3% annually in Q2 2025, rebounding from a 0.5% contraction in the previous quarter and beating expectations for 2.4% growth.

Meanwhile, the ADP employment report showed US private payrolls rose by 104,000 in July, surpassing forecasts for a 64,000 gain and marking a sharp turnaround from June’s revised decline of 23,000 jobs.

The figures reinforced confidence in the resilience of the US economy and labor market, despite ongoing trade tensions linked to President Donald Trump’s tariff policies.

The dollar index, which tracks the greenback against a basket of six major currencies, climbed 0.88% to 99 as of 10:14 p.m. in Mecca time.

While expectations for the Federal Reserve to hold interest rates steady had capped gold’s upside during the session, lingering trade uncertainty remained a key source of support for the precious metal.