The U.S. dollar continued its rally on Wednesday, reaching its strongest level in two months with a 0.88% climb in the dollar index. Investors reacted to upbeat July ADP numbers—104,000 jobs added versus 76,000 forecast—and an upward revision to June’s ADP reading.
Additionally, second-quarter GDP growth outpaced estimates. In afternoon remarks, Fed Chair Jerome Powell signaled that the economic backdrop remains robust and that inflation risks from trade tariffs justify keeping rates at a moderately restrictive stance. Those comments curtailed expectations of imminent rate cuts and pressured gold lower.