Watch Out! Gold Begins to Rebound But Is the Selling Pressure Really Over?!

Global gold prices strengthened during Monday’s trading session (November 2, 2026), following a sharp decline that saw the metal hit a one-year low late last week. Spot gold (XAU/USD) rose 0.6% to US$3,902.39 per troy ounce as of 7:55 AM Singapore time. This uptick marks an attempt at recovery after gold plummeted 3.7% on Friday, closing out October with its worst monthly performance since 2008. The significant drop has caught the attention of investors, who now view current gold prices as an opportunity to re-enter the market.

Support for gold has emerged from a decline in global oil prices ahead of the United States (US) midterm elections on Tuesday (November 3). The drop in oil followed remarks from US Secretary of State Marco Rubio, who indicated that President Donald Trump favors a diplomatic resolution to the conflict with Iran. This development has provided some relief to the market, as lower energy costs could help ease inflationary pressure. Should inflation risks subside, concerns regarding interest rate hikes by the Federal Reserve (The Fed) may also diminish—potentially creating room for gold to recoup some of its recent losses.

Nevertheless, the geopolitical situation in the Middle East remains a threat to market stability. Trump has previously warned of the possibility of further strikes against Iran following the midterm elections, while Tehran has threatened a broader retaliation should such attacks occur. Several Gulf nations are also concerned that a larger-scale conflict could erupt, potentially disrupting global energy supplies. These tensions place gold in a complex position: while the threat of war could boost demand for "safe-haven" assets, a surge in oil prices could simultaneously fuel inflation and reinforce expectations for higher interest rates. Additional pressure on gold has also stemmed from weakness in global technology stock markets. Concerns regarding the scale of investments in artificial intelligence (AI) and the ability of companies to generate profits have triggered a sell-off in stocks over the last few sessions. This situation has dragged down the price of gold, as some investors have sold off their holdings in the precious metal to cover losses or meet liquidity needs elsewhere in their portfolios. Nevertheless, the significant price decline has begun to attract interest from long-term investors, with the potential for additional demand from central banks. While buying activity is emerging, liquidity constraints and negative sentiment in the stock market may still limit any short-term recovery for gold.

From a technical perspective, gold remains vulnerable, despite showing signs of a recovery. Friday’s close below US$3,886 is noteworthy, as this level was previously considered a key support area. A rebound toward US$3,900 offers an initial signal of buyer interest, but it is not yet sufficient to confirm that the selling pressure has subsided. Gold requires more consistent strength—specifically, a move back above the US$4,000 mark—to improve its short-term outlook. Conversely, should the price fail to sustain this recovery and fall back below US$3,886, the risk of further declines remains. According to analysis by Newsmaker.id, gold is beginning to find opportunities for a rebound; however, its future direction will depend heavily on developments regarding the conflict involving Iran, oil prices, and the market's ability to maintain buying momentum following the sharp correction seen throughout October.