Global gold prices held above the US$3,955 per troy ounce mark during Tuesday’s trading session (November 3, 2026), following their largest daily gain in two months. Spot gold rose 0.2% to US$3,954.52 per troy ounce, building on a 1.9% surge from the previous session. This rally was driven by growing optimism regarding a potential peace agreement between the United States (US) and Iran, which triggered a sharp decline in global oil prices.
Market optimism emerged after the Iranian government announced it had secured broader authority to pursue negotiations, while US President Donald Trump signaled that progress was being made in the talks. The prospect of a de-escalation in the conflict caused oil prices to plummet by more than 7% on Monday. The drop in energy costs provided relief to the market, as it could potentially ease global inflationary pressures and alleviate concerns regarding further interest rate hikes by central banks.
Throughout the nine-month conflict in the Middle East, soaring energy prices had fueled inflation and pressured central banks to maintain a tight monetary policy. This environment posed a challenge for gold, as the precious metal does not generate interest. In October alone, gold prices fell by 6.8%, slipping below the US$4,000 level to reach a one-year low. Pressure intensified as a sell-off in artificial intelligence (AI)-related technology stocks prompted some investors to liquidate their gold holdings to cover losses in other assets.
Despite this recovery, gold’s trajectory remains subject to uncertainty stemming from global stock markets and political developments in the US. A decline in Asian technology stocks—following a sell-off among chipmakers on Wall Street—could potentially reignite a need for liquidity among investors. Furthermore, the market is awaiting the results of the U.S. midterm elections on Tuesday, which could influence gold price movements during Wednesday’s trading session. Meanwhile, the Bloomberg Dollar Index has remained relatively stable following a 0.3% decline over the previous two sessions, providing some support for the precious metal.
Newsmaker notes that the surge in gold prices suggests that easing inflation concerns are creating room for a recovery, following the selling pressure experienced throughout October. However, this rise does not yet confirm a definitive shift toward a bullish trend, as risks surrounding interest rate policies and pressure from the stock market persist. Should oil prices continue to weaken and expectations for Federal Reserve interest rate hikes subside, gold may have the opportunity to retest the psychological level of US$4,000. Conversely, heightened market uncertainty could stall gold’s recovery.