Gold surged on Wednesday morning, trading on a pair of reports showing sluggish labor market growth and a rise in workers seeking unemployment benefits. Investors eyed the release of minutes from last month's Fed meeting later in the day.

Gold crossed above the 50-day moving average, trading higher at $33.81 at $2,364 per ounce. Silver also broke through the $30 ceiling, jolting 3.49% to trade up $1.04 at $30.62 per ounce.

The strong showing came on the heels of ADP National Employment Report data showing job creation among private employers slowed for the third straight month. Private sector employment increased by 150,000 jobs in June, falling short of Wall Street expectations. Annual pay was up 4.9% year-over-year – the slowest pace of growth since August 2021–according to the report.

"Job growth has been solid, but not broad-based," ADP chief economist Nela Richardson said in a statement accompanying the data. "Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month."

Additionally, the Department of Labor reported 238,000 workers applied for unemployment benefits last week, an increase of 4,000 from the previous week's revised level of 234,000. The figure fell short of the forecasted 233,000 applications.

The reports increased optimism among investors that federal policymakers would cut interest rates as soon as September, and they hoped to find more supporting evidence when the minutes from last month's Federal Open Market Committee meeting were released Wednesday afternoon.

On Tuesday, Fed chief Jerome Powell said federal policymakers needed more underlying economic data "to be more confident" that inflation is truly cooling before cutting interest rates.