Gold Surges Over 4% in Biggest Single-Day Gain Since February
Gold prices surged on Wednesday, with the SPDR Gold Shares ETF (GLD) recording its biggest single-day gain since February. Spot gold climbed more than 4.3% to $4,252 an ounce, its highest level since June 18, while gold futures for November 2026 deliveries rose 3.8% to $4,293.30. The rally was driven by a weaker U.S. dollar and renewed hopes that the Strait of Hormuz could reopen following comments from President Donald Trump.
Despite the strong gains, gold remains down over 24% from its January record high of $5,602.2 and nearly 1.7% year-to-date. Spot silver also jumped 4.5% to $62.2 an ounce, its highest in nearly a month. The rally gathered momentum after President Trump told Fox News that the U.S. and Iran were engaged in "very good discussions," prompting a pause in planned military strikes.
The weak July ADP jobs report, which showed private employers added only 44,000 jobs compared to expectations of 75,000, also fueled the rally. Peter Schiff, a long-time gold advocate, highlighted the report as a key catalyst for the surge in precious metals. Investors are now awaiting Friday's nonfarm payrolls data for further insights.
Independent metals trader Tai Wong noted that early investors were returning to gold and silver as expectations for further interest rate hikes had eased. Retail sentiment on Stocktwits remained 'bullish' for GLD and 'extremely bullish' for the iShares Silver Trust (SLV).