Gold rises 0.8% to $3,903.90 as oil falls 6%
Key Facts
Spot gold rose 0.8% to $3,903.90 an ounce by 0757 GMT on Nov. 2 after hitting a one-year low in the previous session, according to a Reuters update. The move came as oil prices fell sharply, while investors monitored energy’s impact on inflation expectations and the U.S. interest rate outlook. Analyst Kyle Rodda said gold was “merely seeing a rebound after the sell-off, alongside a decline in oil prices at the start of the week.” The rise puts the metal on a limited recovery path after recent losses, while market pressures remain in place in the near term.
Gold fell 3.5% on Friday, Oct. 30, to its lowest level since October 2025 and dropped below $4,000 an ounce, Reuters reported. The decline followed a sell-off in technology shares that triggered margin calls and forced sales of safe-haven assets, including gold. Saxo Bank’s head of commodity strategy, Ole Hansen, said “gold faces a challenging near-term environment, as technical selling pressure and liquidity concerns outweigh its longer-term investment appeal.” This reflects the concurrent impact of technical pressure and liquidity concerns on demand for the metal, despite its longer-term investment appeal.
On the oil front, Reuters linked the decline to hopes that talks between Iranian and Qatari officials would ease supply disruptions in the Middle East. By 1357 GMT on Nov. 2, Brent crude futures had fallen 6.0% to $106.65 a barrel, while West Texas Intermediate was down 6.1% to $97.75. The declines in both crude benchmarks coincided with gold’s rebound, reflecting a easing of the pressure energy prices put on inflation and interest rate expectations. The Reuters report did not quantify the risk premium, but linked oil’s move to hopes of reduced supply disruption. Rodda said lower oil prices gave precious metals some relief at the start of the week.
Oil’s move matters for gold because rising energy prices typically strengthen expectations that the Federal Reserve will keep interest rates elevated for longer, Reuters reported. This expectation increases the opportunity cost of holding gold, which pays no yield. In the market backdrop, three Federal Reserve officials on Friday backed further rate increases to combat elevated inflation. Their comments came after policymakers kept short-term borrowing costs steady at the previous week’s meeting. Oil signals and Fed comments therefore intersect in shaping investor expectations for interest rates, a factor watched by the gold market.
Upcoming U.S. events include the midterm elections scheduled for November 2026. Congressional elections are held every two years and cover all 435 seats in the House of Representatives, according to the U.S. government. Investors are also watching the October jobs report, due on Nov. 6 at 08:30 a.m. Eastern time, and the consumer price index for the same month on Nov. 10 at the same time, according to the Bureau of Labor Statistics calendar. Minutes from the Federal Open Market Committee meeting held on Oct. 27 and 28 are scheduled for release on Nov. 18. The committee’s next meeting is scheduled for Dec. 8 and 9, 2026, according to the Federal Reserve calendar.