Gold Surges Above $4,240 as US Labor Data Crumbles

The US labor market report for July showed weaker-than-expected numbers, causing gold to surge above $4,240 per troy ounce on Wednesday.

ADP private payrolls rose by just 44K in July, short of the 70K forecast and a sharp deceleration from the previous month's print of 98K. The employment sub-index told a more troubling story, collapsing to 47.4 from 51.2.

The US Dollar Index (DXY) eased around 0.16% and traded near 99.70 amid a de-escalation in the US-Iran war with both countries close to resuming peace talks.