Gold holds near $3,950 as Iran peace hopes ease oil, U.S. vote in focus

Gold  |  2026-11-03 01:17:03   |   By

Bullion climbed 1.9% on Monday after Iranian President Masoud Pezeshkian said his government had received greater authority from the country’s supreme leader to pursue peace negotiations.

SEATTLE (Scrap Monster):  Gold held above $3,950 an ounce on Tuesday after posting their biggest daily gain in two months, as hopes of progress in U.S.-Iran peace negotiations eased energy-driven inflation concerns, while investors awaited U.S. midterm election for potential shifts in the market outlook.

At 19:29 ET (00:29 GMT), spot gold rose 0.3% to $3,956.32 an ounce, while U.S. gold futures slipped slightly by 0.1% to $3,966.17. Silver advanced 0.2% to $50.7700 an ounce, while platinum gained 0.6% to $1,455.25. Spot palladium rose 0.6% to $973.37, while palladium futures added 0.3% to $965.25. The U.S. dollar Index fell marginally to 101.80.

Bullion climbed 1.9% on Monday after Iranian President Masoud Pezeshkian said his government had received greater authority from the country’s supreme leader to pursue peace negotiations.

U.S. President Donald Trump also indicated progress in the discussions, helping Brent crude fall more than 7% before oil prices stabilised on Tuesday.

The nine-month U.S.-Iran conflict has driven energy prices higher and fuelled inflation, increasing pressure on central banks to raise interest rates.

Higher borrowing costs typically weigh on gold because it does not generate interest income. However, easing oil prices have temporarily reduced concerns about further monetary tightening.

Gold fell 6.8% in October, breaking below the key $4,000 threshold toward the end of the month and reaching a one-year low.

The metal also suffered from last week’s retreat in artificial intelligence-related stocks, as investors liquidated bullion holdings to cover losses elsewhere. Further weakness in Asian technology shares on Tuesday, following a deeper selloff in U.S. chipmakers, left gold vulnerable to additional selling.

The U.S. midterm elections could provide another catalyst, with results potentially influencing gold prices during Wednesday’s Asian session. Investors are assessing whether a shift in the political landscape could refocus attention on U.S. inflation and fiscal deficits, potentially restoring bullion’s appeal as a hedge against economic and geopolitical uncertainty.

Technical indicators also offered some support, with a measure of gold’s relative strength moving into oversold territory last week, suggesting prices could be poised for a recovery. Physical demand has provided another source of support, according to ANZ, particularly from Chinese households that have stepped up purchases during the recent price decline.

Despite the recent rebound, renewed fighting in the Middle East remains a risk, particularly as hopes for diplomatic progress could quickly reverse. 

Courtesy: www.investing.com