Global gold prices weakened again in trading on Tuesday (November 3, 2026), as investor caution grew amid diplomatic developments between the United States and Iran, alongside the ongoing U.S. midterm elections.
Spot gold (XAU/USD) fell 0.5% to US$3,925.25 per troy ounce during the New York session, having previously risen by as much as 0.6%. This decline occurred as global oil prices retreated following unconfirmed reports of progress in peace talks between the U.S. and Iran. Simultaneously, rising U.S. government bond yields and a stronger dollar dampened the appeal of gold—a non-interest-bearing asset.
Washington and Tehran are currently considering new proposals from mediators aimed at preventing a return to large-scale military conflict. However, Iranian state television cited a spokesperson for the negotiating team, stating that there have been no new developments regarding an agreement. This uncertainty has prompted investors to trim large positions ahead of the U.S. election results. Furthermore, gold remains under pressure after plunging nearly 7% throughout October and falling below the psychological threshold of US$4,000. A correction in the stocks of artificial intelligence (AI)-related companies also previously triggered a sell-off in gold, as investors sought liquidity amidst volatility in financial markets.
Additional pressure stemmed from U.S. labor market data, which showed an unexpected rise in job openings to a four-month high in September, while layoffs fell to their lowest level in over a year. These figures highlight the resilience of labor demand and may sustain expectations for a tight interest-rate policy from the Federal Reserve. Meanwhile, the Bloomberg Dollar Spot Index rose 0.3%, while the price of silver dropped 1.9% to US$49.65 per troy ounce, with platinum and palladium also seeing declines. Market participants are currently awaiting clarity on the outcome of the US elections, developments in diplomacy with Iran, and upcoming economic data to determine the direction of gold prices.
Newsmaker’s Perspective
The weakening of gold suggests that the market is still struggling to build recovery momentum following the sharp sell-off throughout October. While a decline in oil prices may ease inflation concerns, a stronger dollar and rising Treasury yields are exerting pressure on the precious metal.
The US midterm elections also represent a source of uncertainty. Changes in the composition of Congress could influence fiscal policy and geopolitical relations, though the impact on gold does not always follow a predictable path.
Source: Newsmaker.id