Global gold prices staged a sharp recovery in trading on Monday (November 2, 2026), following a slump to their lowest level in a year.
Spot gold (XAU/USD) jumped 2.1% to US$3,954.41 per troy ounce, rebounding from a roughly 3.6% decline in Friday’s session. Meanwhile, U.S. gold futures for December delivery closed 1.8% higher at US$3,969.60 per troy ounce. This rally was fueled by an approximately 8% drop in global oil prices, following three consecutive days of diplomatic talks between Iran and Qatar aimed at resolving the conflict in the Middle East. The decline in energy costs helped ease global inflation concerns, providing room for gold to recoup some of its recent losses.
From a fundamental perspective, the easing of pressure from oil prices has also tempered concerns that the Federal Reserve might need to aggressively tighten monetary policy once again. According to the CME FedWatch Tool—cited in market reports—the probability of a Federal Reserve interest rate hike in December has fallen to approximately 77%, down from 80% the previous week. Nevertheless, expectations for monetary tightening remain robust, which could potentially cap further gains for gold. Peter Grant, an analyst at Zaner Metals, noted that the weakness in oil prices has brought relief to the market by reducing inflationary risks, while movements in the U.S. dollar have also offered some support to the precious metal. Gold’s recovery follows a massive sell-off in technology stocks and artificial intelligence (AI)-related companies the previous week, which triggered a need for liquidity and forced the liquidation of various assets, including gold. From a technical perspective, the recovery in gold is showing signs that selling pressure is easing, as the 14-day Relative Strength Index (RSI) has risen to around 37—up from below 30 on Friday.
This movement indicates that gold has exited the "oversold" territory, though it is not yet sufficient to confirm a shift toward a bullish trend. Silver also strengthened, surging 3.1% to US$50.64 per ounce, while platinum rose 1.3% to US$1,449.25; meanwhile, palladium remained weak, falling 1.1% to US$966.08. Investors are now turning their attention to the U.S. midterm elections on November 3, assessing potential impacts on fiscal policy, geopolitical developments, and market sentiment. Given the persistent uncertainty surrounding monetary policy, the sustainability of gold’s recovery will depend on the stability of energy prices, the trajectory of the U.S. dollar, and shifts in expectations regarding Federal Reserve interest rates.
Source: Newsmaker.id