Gold rises 0.8% to $3,907.17 after falling 3.7% in previous session

Key Facts

Spot gold rose 0.8% to $3,907.17 an ounce, while U.S. futures gained 0.5% to $3,916.32 at 04:21 GMT on November 2, according to an Investing.com update. The move came after the metal lost 3.7% in the previous session, a decline that took prices to their lowest level in a year. The report said buyers had returned to take advantage of lower prices, while falling oil eased some inflation concerns. Still, gold ended October with its worst monthly performance for that month since 2008. The move marks a rebound after a sharp sell-off, while geopolitical factors and market pressures remain in play.

EL7 data showed spot gold closing at $3,875.645 an ounce on October 30, then at $3,899.195 on November 1 and $3,906.405 on November 2. These daily closes show a gradual rise from the end-October level, but differ from the intraday prices cited in the Investing.com update at 04:21 GMT. In early Asian trading on November 2, Brent fell 1.33% to $111.92 a barrel, while U.S. West Texas Intermediate crude dropped 1.71% to $102.34, according to Reuters. The market report linked the decline in oil to ongoing Iran-Qatar talks and said lower crude prices eased some inflation-related concerns. Oil closes on October 30 were higher, at $113.43 for Brent and $104.12 for U.S. West Texas Intermediate, according to EL7 data.

The decline in oil coincided with diplomatic activity concerning Iran, with Iranian Foreign Minister Abbas Araghchi saying Iranian diplomats were in Qatar for discussions. Araghchi said a new proposal reached with mediators could shorten to two days the time needed to fully reopen the Strait of Hormuz. There were no direct talks with the United States, according to the Associated Press. The proposal puts the strait, a vital conduit for energy flows, at the center of efforts to contain the crisis. Araghchi said Tehran was not planning to meet U.S. officials, while the agency reported that an earlier Iranian proposal to reopen the passage within a week had been rejected.

At the Manama Dialogue forum, Anwar Gargash said the UAE did not want another round of confrontation in the region, warning that military solutions would not provide quick exits from the crisis. The remarks reflect continued regional concern about an escalation, even as proposals are being discussed through mediators. Qatar talks included a proposal to reopen the Strait of Hormuz within two days, while no final agreement was announced in the reported remarks. The continuation of diplomacy keeps the security of the sea passage among the key issues being monitored by energy markets. The risk of escalation also remains in the background of trading, alongside the effect any change in supplies could have on oil prices and inflation concerns.

Stock markets remained a source of pressure on gold, with the Investing.com report saying some investors sold their holdings of the metal to cover losses in their other portfolios. The S&P 500 fell 1.8% on October 30, recording its worst daily performance since June, while the Nasdaq Composite dropped 2.9% and the Dow Jones Industrial Average fell 1.1%, according to the Associated Press. The agency attributed the intensifying technology stock sell-off to concerns that AI enthusiasm had pushed prices too high. It also said corporate spending on AI investments was among the factors behind those concerns. Gold sales to cover losses in other assets added pressure on precious metals, despite ongoing geopolitical risks.

Attention now turns to U.S. data due in November: the October jobs report is scheduled for November 6, followed by the consumer price index for the same month on November 10, according to the U.S. Bureau of Labor Statistics calendar. The releases offer two near-term checkpoints for the labor market and prices, indicators markets monitor when assessing the inflation outlook. In the oil market, prices declined in Asian trading as Iran-Qatar talks continued, while the gold report said lower oil had eased some inflation concerns. At the same time, the course of talks on the Strait of Hormuz remains in focus, amid the UAE warning against another round of confrontation. The data releases and regional developments will shape the trading backdrop in the coming days, while gold's rebound on November 2 followed a sharp loss in the previous session.