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Gold Rebounds Toward $3,900 as Oil Prices Fall, Iran Risks Persist
Gold rose 0.6% to $3,900.05 per ounce in early Monday trading as lower oil prices eased inflation concerns and bargain buyers returned following October's steep selloff. However, renewed geopolitical tensions and weakness in technology stocks continued to cloud the recovery.
By Paul Ploumis
Published: November 2, 2026
Market data: Early November 2, 2026 (GMT)
Key Points
- Gold: Spot prices rose 0.6% to $3,900.05/oz after a 3.7% decline in the previous session.
- Oil: Prices fell for a second session as prospects for U.S.-Iran diplomacy eased inflation concerns.
- Equities: Technology-stock losses triggered selling in bullion as investors raised cash.
- Silver: Advanced 1.4% to $49.83/oz.
- Platinum and palladium: Spot prices declined 3.4% and 2.6%, respectively.
MONTREAL (Scrap Monster): Gold prices recovered on Monday, November 2, as falling oil prices reduced some inflation concerns and bargain hunters returned after bullion suffered its steepest monthly decline since 2008.
At 20:01 ET on Sunday (01:01 GMT Monday), spot gold was up 0.6% at $3,900.05 per ounce, while U.S. gold futures gained 0.2% to $3,908.30. The U.S. Dollar Index declined 0.2% to 101.88.
The recovery followed a 3.7% fall in the previous session, when gold touched a one-year low and completed its worst October performance since 2008. Bargain buying helped bullion gain as much as 0.7% during the subsequent rebound.
ScrapMonster Edge: Why Gold Fell Alongside Technology Stocks
Gold is widely viewed as a safe-haven asset, but last week's technology-led equity selloff exposed an important distinction between safe-haven demand and short-term liquidity needs.
Investors facing losses elsewhere sold gold to raise cash, adding pressure to bullion even as broader market uncertainty increased. Monday's rebound coincided with lower oil prices and renewed bargain buying, but did not erase the preceding selloff.
Market takeaway: Gold can decline alongside equities when investors need liquidity. The immediate recovery therefore needs to be viewed against both the pressure from portfolio liquidations and changing inflation expectations, rather than as a clear signal that broader market risks have subsided.
Lower Oil Prices Ease Inflation Concerns
Oil prices declined for a second consecutive session ahead of the November 3 U.S. midterm elections, providing some relief to investors concerned about energy-driven inflation.
U.S. Secretary of State Marco Rubio said President Donald Trump favored a diplomatic solution to the conflict with Iran, raising hopes that negotiations could reduce the risk of further energy-market disruption.
However, geopolitical uncertainty remained elevated. Trump had repeatedly warned that the United States could resume strikes against Iran after the elections, while Tehran threatened a broader retaliatory response.
Several Persian Gulf countries also expressed concern that renewed U.S. military action could trigger a more destructive regional conflict.
Technology Stock Selloff Keeps Gold Under Pressure
Weakness in global technology shares remained another source of pressure on precious metals.
Recent equity losses, particularly in companies associated with the artificial intelligence investment boom, prompted some investors to liquidate gold holdings to cover losses elsewhere in their portfolios.
U.S. stocks were also expected to remain under pressure on Monday following the previous week's Wall Street selloff.
The technology-led decline contributed to gold's fall to a one-year low, illustrating how demand for cash can temporarily outweigh bullion's traditional defensive appeal.
Silver Gains While Platinum and Palladium Decline
Other precious metals recorded mixed movements in early trading:
- Silver: Rose 1.4% to $49.83 per ounce.
- Platinum: Fell 3.4% to $1,434.65 per ounce.
- Spot palladium: Declined 2.6% to $980.35 per ounce.
- Palladium futures: Advanced 1% to $986.75.
Gold's recovery was supported by bargain buying and softer oil prices, while continued technology-sector volatility and uncertainty surrounding the U.S.-Iran conflict remained risks to its near-term performance.
Courtesy: www.investing.com