Gold rebounds after sharp selloff as oil prices ease

November 02, 2026 (MLN): Gold prices recovered on Monday following a sharp decline in the previous session, supported by easing oil prices that reduced inflationary pressures, while market participants evaluated recent Federal Reserve officials' remarks for signals about the future direction of US monetary policy.

Currently, spot gold is up 0.61% to $3,998.42 an ounce as of [01:47 pm] PST, according to data reported by Mettis Global.

The precious metal had plunged 3.5% on Friday, touching its lowest level since October 2025 and breaking below the crucial $4,000-per-ounce threshold.

The decline came amid a broader selloff in technology stocks, which triggered margin calls and forced investors to liquidate safe-haven holdings, including gold, according to Reuters.

Oil prices dropped more than 3% on Monday after reports that Iranian negotiators held a third consecutive day of discussions with Qatari mediators in Doha on Sunday. The talks are aimed at reaching an agreement to end the US-Israeli war on Iran.

Higher energy prices typically reinforce expectations of prolonged monetary tightening by the Federal Reserve, raising the opportunity cost of holding non-yielding assets such as gold.

Investors are also monitoring the November 3 US midterm elections, with attention on their possible implications for government fiscal policy and overall market sentiment.

Adding to uncertainty, three Federal Reserve officials on Friday advocated further interest rate increases to contain persistent inflation. Their comments followed last week's monetary policy meeting, during which policymakers opted to keep short-term borrowing costs unchanged.

Among other precious metals, spot silver advanced 2.5% to $50.33 per ounce, while platinum remained steady at $1,431.50. Palladium gained 0.9% to $986 per ounce.

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