Gold gains over 1% on softer oil, weaker dollar

November 09, 2026 (MLN): Gold prices climbed more than 1% on Monday as a decline in oil prices eased inflationary concerns, while investors turned their attention towards key U.S. inflation readings and upcoming signals from the Federal Reserve regarding its monetary policy direction.

Currently, spot gold is up 1.29% to $4,118.28 an ounce as of [11:23 am] PST, according to data reported by Mettis Global.

Oil prices retreated after U.S. President Donald Trump indicated that further military action against Iran was unlikely as diplomatic efforts to resolve the conflict continued. The development reduced concerns over potential disruptions to global oil supplies.

The decline in energy prices helped ease inflation expectations, raising the possibility of lower interest rates and reducing the opportunity cost of holding non-yielding assets such as gold.

Tim Waterer, chief market analyst at KCM Trade, said Trump's softer stance towards Iran had helped contain oil prices, easing inflationary pressures that had previously weighed on bullion. He also pointed to a slight weakening in the U.S. dollar as another factor supporting gold.

The greenback weakened against major currencies, making dollar-denominated gold relatively cheaper for international buyers and providing additional support to prices.

However, stronger-than-expected U.S. employment figures continued to reinforce expectations of tighter monetary policy. Job growth accelerated in October, while the unemployment rate declined to 4.1%, indicating continued resilience in the labour market.

According to CME's FedWatch tool, market participants are now pricing in a 79% probability of a Federal Reserve interest-rate hike in December, compared with 71% before the release of the latest employment data, as reported by CNBC.

Investors are now awaiting the U.S. Consumer Price Index (CPI) report scheduled for Tuesday, followed by the Producer Price Index (PPI) on Friday, for further clues about inflation trends and the Fed's policy outlook.

Waterer cautioned that stronger-than-expected inflation figures could strengthen the dollar and increase expectations of a December rate hike, potentially putting renewed downward pressure on gold.

In other precious metals, spot silver advanced 2.8% to $53.31 per ounce, while platinum gained 1.6% to $1,556.14. Palladium also moved higher, rising 2.1% to $1,044.28 per ounce.

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