Gold price rises over 2% from one-year low on softer oil prices; US midterms in focus

Gold prices rose more than 2% on Monday, November 2, rebounding from a one-year low hit in the previous session. According to a Reuters report carried by Mining.com, the recovery was supported by a retreat in oil prices that tempered inflation worries, while investors waited for the US midterm elections later this week.

Spot gold was up 2.1% at $3,957.19 an ounce at 10:49 a.m. ET (1411 GMT). It had ended Friday 3.6% lower and touched its lowest level since October 2025. US gold futures for December delivery rose 1.77% to $3,967.40 an ounce. Earlier reports from the same session had the metal up a smaller 0.7% to 0.8%, at roughly $3,900 to $3,904 an ounce, so the rebound widened as the day went on.

Analysts said Friday's drop followed a selloff in technology and AI-linked stocks that spread across markets. Margin calls led investors to sell safe-haven assets such as gold to raise cash. CNBC's version of the Reuters report said the AI-stock selloff set off a rush for cash and forced investors to liquidate holdings including gold.

Oil was the main driver on Monday. Oil prices fell more than 3% in earlier trading after Iranian negotiators held a third straight day of talks in Doha with Qatari mediators. The talks are aimed at a deal to end the US-Israeli war on Iran. Elevated energy prices tend to raise expectations that the Federal Reserve will keep interest rates higher for longer. That increases the opportunity cost of holding non-yielding bullion, so lower oil prices can ease that pressure.

The Fed outlook remains central to gold's direction. Reuters reported that three Fed officials argued on Friday for further interest rate increases to fight high inflation. Those were the first comments from central bankers since last week's policy meeting, where the Fed left short-term borrowing costs steady. Even so, CME Group's FedWatch Tool showed traders pricing a 77% chance of a US rate hike in December, down from 80% a week earlier.

One technical indicator also showed a change. Gold's 14-day Relative Strength Index rose to about 37 on Monday from below 30 on Friday. Readings below 30 are generally read as oversold. The move indicates the metal has come out of technically oversold territory, though the indicator says nothing certain about what comes next.

Analyst commentary was cautious. Independent markets analyst Nikos Tzabouras said optimism over a US-Iran diplomatic breakthrough, together with renewed concerns about the AI boom, was allowing some doubt about how far the Fed would need to tighten. He added that the bounce "may prove short-lived." That is one analyst's view and not a forecast of what will happen.

Attention is now moving to the November 3 US midterm elections. Investors are looking at their potential effect on fiscal policy, geopolitics and broader market sentiment. Reports also noted that some investors may be reducing positions ahead of the vote.

Gold's moves this week reflect several forces at once: interest-rate expectations, energy prices and Middle East diplomacy, equity-market stress and political risk. The market will keep weighing these, and no single event guarantees a direction for prices. This article is for information only and is not investment advice.

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