Gold Rises from One-Year Low

Gold prices climbed above $3,900 an ounce on Monday, recovering modestly from one-year lows as declining oil prices eased concerns over inflation and potential interest rate increases. Oil prices declined amid signs of ongoing diplomatic efforts to prevent renewed US military action against Iran following the midterm elections. President Trump had previously threatened to resume strikes against Iran after the vote, while Tehran warned of broader retaliation. Meanwhile, investors are awaiting this week’s closely watched US jobs report for further insight into the Federal Reserve’s monetary policy outlook, with markets currently assigning around a 75% probability of a rate hike in December. Last week, gold faced significant selling pressure as persistent concerns over energy-driven inflation strengthened expectations of further Fed rate increases. A broader global equity selloff fueled by AI concerns also prompted investors to liquidate gold holdings to cover losses in other assets.

Gold tumbled below $3,900 an ounce, touching its lowest level since October 2025, as rising energy prices and persistent inflation concerns reinforced expectations that US interest rates will remain elevated for longer. Major central banks, including the Federal Reserve and the European Central Bank, held rates steady this week but signaled that the fight against inflation is not yet over, highlighting the risks posed by surging energy costs. Meanwhile, US data released Thursday showed inflation accelerating in September, with core price growth also picking up, strengthening expectations of a potential Fed rate hike in December. Gold also came under pressure from a sharp sell-off in technology stocks, driven by concerns over rising AI-related spending, which may have triggered forced selling and margin calls across markets. At the same time, oil prices climbed on fears of an escalation in the Middle East conflict, while physical gold demand across key Asian markets remained subdued.

Gold decreased to 3937.00 USD/t.oz, the lowest since November 2025. Over the past 4 weeks, Gold lost 5.68%, and in the last 12 months, it decreased 1.59%.