Gold climbed back above $3,900 an ounce on Monday, November 2, recovering modestly from a one-year low as falling oil prices eased worries about inflation and further interest rate increases.
Spot gold rose 0.7 percent to $3,900.90 an ounce by 0440 GMT, according to a Reuters report carried by Business Recorder, while United States gold futures for December delivery gained 0.3 percent to $3,909.70.
Gold matters far beyond trading screens because it is the asset many investors turn to when inflation, war or market turmoil shakes confidence, and its sharp fall on Friday had signalled how much pressure that confidence was under.
Other early readings on Monday put spot gold at $3,904.20 an ounce, up 0.73 percent, after it had touched a low of $3,870 on October 30, Hurriyet Daily News reported.
“We’re just getting a bounce after the selloff, along with oil prices coming off to start the week, which is providing a little bit of a relief for precious metals generally,” Kyle Rodda said.
Friday’s drop was steep. Bullion slumped 3.5 percent to its lowest level since October 2025, falling below the key $4,000 an ounce level, after a sell-off in technology stocks forced investors to sell safe-haven assets such as gold and meet margin calls.
A broader global equity sell-off driven by concerns over artificial intelligence investment also prompted investors to liquidate gold holdings to cover losses in other assets, TradingView News reported.
Gold had already been under pressure for three consecutive weeks of losses, according to Hurriyet Daily News, as concerns over energy-driven inflation strengthened expectations of further United States interest rate increases.
Oil slide brings relief
Oil prices fell more than 3 percent after Reuters reported that Iranian negotiators were in Doha on Sunday for a third consecutive day of talks with Qatari mediators, aimed at pushing for a deal to end the United States-Israeli war on Iran.
Lower oil prices matter for gold because elevated energy prices often raise expectations that the Federal Reserve will keep interest rates higher for longer, increasing the opportunity cost of holding non-yielding bullion.
Diplomatic efforts to prevent renewed fighting between the United States and Iran continued ahead of the United States midterm elections, TradingView News reported, and President Donald Trump had previously threatened to resume strikes against Iran after the vote, while Tehran warned of broader retaliation.
Lower bond yields and the dollar’s retreat from recent highs also supported gold on Monday, according to Hurriyet Daily News.
In Türkiye, gold was selling for around 6,275 Turkish liras per gram, Hurriyet Daily News reported, with domestic prices reflecting both international bullion prices and the lira’s exchange rate against the dollar.
Other precious metals also steadied. Spot silver climbed 1.8 percent to $49.97, platinum gained 0.1 percent to $1,432.63 and palladium steadied at $976.31, according to the Reuters report.
Fed outlook stays in focus
Gold faces a difficult near-term environment, analysts cautioned, even after Monday’s bounce. “Gold faces a difficult near-term environment in which technical selling and liquidity concerns are overshadowing its longer-term investment appeal,” Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.
Higher interest rates tend to weigh on gold, which pays no interest, by making interest-bearing assets more attractive, Hurriyet Daily News noted.
The United States Federal Reserve held interest rates steady on October 28, but a trio of Fed officials made the case on Friday for more interest rate increases to combat high levels of inflation, in the first round of commentary by central bankers after last week’s monetary policy meeting.
Traders are pricing in about a 73 percent chance of a rate hike in December, according to the CME’s FedWatch Tool cited in the Reuters report, while other Monday reports put that probability at around 75 percent.
Investors are awaiting United States nonfarm payrolls data, due on November 6, for further indications of the Fed’s next move, and that report could decide whether Monday’s rebound holds or fades.
For now, the bounce has restored gold above $3,900 an ounce, but it has not erased Friday’s fall below $4,000, and traders remain watchful of oil prices, the Iran talks and the coming jobs data before calling the sell-off over.
