• US October private payrolls rise by 42,000
• Equities down on concerns of stretched valuation
• Traders see 63% chance of US interest rate cut in December

Nov 5 (Reuters) - Gold prices rose over 1% on Wednesday as investors avoided riskier assets despite stronger-than-expected private U.S. payrolls data.

Spot gold was up 1.3% at $3,983.89 per ounce as of 2:30 p.m. ET (1930 GMT). U.S. gold futures for December delivery rose 0.8% to settle at $3,992.90 per ounce.

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"Gold and silver are modestly higher despite a stronger-than-expected ADP private payrolls report, which is the best broad jobs indicator given the shutdown. This should give comfort to bulls who were surprised that metals fell along with risky assets yesterday," said Tai Wong, an independent metals trader.

U.S. private employment increased by 42,000 jobs last month, above Reuters' estimate of a 28,000 rise, the ADP employment report showed on Wednesday. A strong jobs market typically makes interest rate cuts less likely and can keep rates higher for longer.

Stocks fell on Wednesday from record highs on fears that equity markets might have become overstretched.

"Some safe-haven demand has surfaced at mid-week as the global stock markets are still a bit shaky amid ideas U.S. stocks are overvalued and that there is an AI (artificial intelligence) stock bubble," said Jim Wyckoff, senior analyst at Kitco Metals, in a note.

Meanwhile, the Federal Reserve cut U.S. interest rates last week, with Chair Jerome Powell indicating it could be the final reduction this year.

Traders see a 63% chance of another rate cut in December, down from over 90% last week.

Non-yielding gold tends to do well in a low-interest-rate environment and during times of economic uncertainty.

Eyes will also be on a U.S. Supreme Court hearing later on Wednesday on the legality of President Donald Trump's tariffs, after a lower court ruled the administration had overstepped its authority by imposing levies under an emergency law.

Elsewhere, spot silver gained 2.2% at $48.13 per ounce, platinum rose 1.7% to $1,561.65, and palladium climbed 2.4% to $1,424.22.

https://www.reuters.com/world/india/gold-rebounds-near-1-week-low-bargain-hunting-ahead-us-jobs-data-2025-11-05/