Gold Prices Rebound After Falling to a One-Year Low

Gold prices rebounded on Monday after falling to a one-year low in the previous session, as declining oil prices eased some inflation concerns. Investors also remained focused on the US midterm elections scheduled for this week and their potential implications for economic and fiscal policy.

At around 4pm Bangladesh time on Monday, spot gold rose 0.7% to $3,900.14 per ounce. The metal had fallen 3.6% on Friday, reaching its lowest level since October 2025. Meanwhile, US gold futures for December delivery gained 0.3% to $3,909.20 per ounce.

Analysts said a sharp sell-off in technology and artificial intelligence (AI) stocks on Friday prompted investors to hold cash. Some were forced to sell even safe-haven assets such as gold to cover losses elsewhere.

Independent financial market analyst Nikos Tzabouras said optimism over the possibility of a diplomatic understanding between the United States and Iran, alongside renewed concerns about growth in the AI sector, had created uncertainty over the Federal Reserve’s future interest-rate decisions. This helped gold prices recover, although the upward trend might not last long, he said.

Oil prices fell by more than 3% on Monday following a third consecutive day of discussions involving Iranian and Qatari officials aimed at securing an agreement to end the war involving Iran, the United States and Israel.

Lower oil prices can ease inflationary pressure and reduce concerns that interest rates will remain elevated for an extended period. As gold does not pay interest, lower interest rates reduce the opportunity cost of holding the metal, potentially supporting demand.

Investors are also watching the US midterm elections scheduled for November 3, assessing how the outcome could affect fiscal policy and broader financial markets.

Tzabouras said markets could remain cautious ahead of the elections amid the possibility of developments in the Middle East conflict. He added that continued losses in technology stocks could force investors to sell gold to cover losses in other parts of their portfolios, potentially putting renewed pressure on prices.

Other precious metals also advanced on Monday. Spot silver climbed 2.5% to $50.35 per ounce after falling below $50 for the first time in 11 months on Friday.

Platinum edged up 0.01% to $1,431.07 per ounce, while palladium gained 0.3% to $979.25 per ounce. Both metals had hit their lowest levels in 13 and 17 months, respectively, on Friday.