Gold Prices Surge on Weaker Dollar and Cooling Labor Market

Gold prices rose on September 3, 2026, as the metal rebounded from its three-day decline. The COMEX gold futures climbed 1.19% to trade at $4,467.20 per ounce, while domestic markets followed suit with a 0.09% gain in the MCX October gold contract.

The turnaround was largely attributed to the cooling labor market in the U.S., where only 38,000 new private-sector jobs were added in August, according to the latest ADP report. This missed market expectations and eased fears of aggressive interest rate hikes by the Federal Reserve.

A weaker U.S. dollar also contributed to the surge in gold prices, making the metal more affordable for buyers using other currencies. Additionally, concerns regarding energy-linked inflation have moderated following statements from New York Federal Reserve President John Williams.

However, investors should remain cautious as geopolitical tensions and structural concerns regarding U.S. debt levels continue to create uncertainty in global markets. The upcoming U.S. Non-Farm Payrolls and unemployment reports will be closely monitored for further policy cues.