Gold rises on softer oil as markets parse Fed signals
GLD•Spot gold rose 0.9% to $3,907.94 an ounce on Monday after a selloff in the previous session, as weaker oil prices eased inflation concerns and investors assessed Federal Reserve signals. Gold fell 3.5% on Friday to its lowest since October 2025, below $4,000 an ounce.
1. Gold rebounds
Spot gold rose 0.9% to $3,907.94 per ounce by 0633 GMT on Monday, after hitting a one-year low in the previous session. U.S. gold futures for December delivery gained 0.5% to $3,916.70.
2. Oil and Fed signals
Oil prices fell more than 3% after Iranian negotiators met Qatari mediators in Doha for a third consecutive day of talks aimed at a deal to end the US-Israeli war on Iran. Lower energy prices tempered inflation concerns, while investors assessed Federal Reserve comments; three officials argued Friday for more rate increases to combat high inflation.
3. Recent selloff
Gold slumped 3.5% on Friday to its lowest since October 2025, falling below $4,000 an ounce amid a technology-stock selloff that prompted margin calls and forced sales of safe-haven assets. Investors were also focusing on the November 3 US midterm elections and their potential effect on fiscal policy and broader market sentiment.
