NEW YORK — Gold Rebounds as Lower Oil Prices Ease Inflation Concerns and Markets Assess Fed Outlook
Gold prices climbed on Monday, recovering part of their recent losses as declining oil prices eased inflation concerns and investors assessed the Federal Reserve’s latest monetary policy signals.
Spot gold rose 0.8% to $3,903.90 per ounce by 0757 GMT. US gold futures for December delivery also gained 0.4%, reaching $3,913.20.
The gains came after bullion suffered a sharp 3.5% decline on Friday, falling to its lowest level since October 2025. The selloff pushed prices below the psychologically significant $4,000-per-ounce mark as falling technology stocks triggered margin calls, forcing investors to sell assets, including traditional safe-haven investments.
Kyle Rodda, senior financial market analyst at Capital.com, said Monday’s movement appeared to represent a recovery from the heavy selling recorded during the previous session. He also identified falling oil prices as a positive development for precious metals.
Oil prices declined more than 3% on Monday following reports that Iranian negotiators had held discussions with Qatari mediators in Doha for a third consecutive day. The talks were focused on advancing an agreement to end the war involving the United States and Israel against Iran.
Lower energy prices are significant for gold because rising oil costs can fuel inflation expectations. Increasing inflation risks may lead investors to believe the Federal Reserve will keep interest rates elevated for a longer period.
Higher interest rates typically reduce gold’s appeal relative to interest-bearing assets because the precious metal does not provide interest income.
Market participants are also keeping a close watch on the November 3 US midterm elections. Their results could affect expectations surrounding fiscal policy and wider financial market conditions.
The Federal Reserve’s policy direction remains another major factor influencing investor sentiment. Three Fed officials said on Friday that further interest rate increases could be required to bring persistent inflation under control. Their remarks came after last week’s monetary policy meeting, when policymakers chose to keep short-term borrowing costs unchanged.
Despite the latest price recovery, market analysts remain cautious about gold’s near-term prospects.
Ole Hansen, head of commodity strategy at Saxo Bank, cautioned that technical selling and concerns over market liquidity were currently outweighing the metal’s longer-term investment appeal.
Other precious metals also moved higher during Monday’s trading session. Spot silver advanced 2.5% to $50.33 per ounce, while platinum was little changed at $1,431.50. Palladium gained 0.9% to reach $986.00.
Monday’s rebound provided some relief for gold investors following Friday’s substantial losses. However, movements in oil prices, Federal Reserve monetary policy and broader financial market conditions are expected to remain key influences on bullion’s performance in the near term.
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