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Source: Newasmaker.id
Global gold prices showed signs of recovery during trading on Monday (November 2, 2026), hovering around US$3,903 per troy ounce following a sharp sell-off late last week. This rebound comes as a decline in global oil prices has eased some concerns regarding inflation in the United States. Buying at lower price levels also provided support for the precious metal, which had slumped by approximately 3.7% on Friday—marking its worst October performance since 2008.
The drop in oil prices has created room for gold to recover. Market sentiment improved following reports that U.S. President Donald Trump has opted to prioritize diplomatic channels to resolve conflicts with Iran ahead of the U.S. midterm elections. Hopes for a de-escalation of tensions in the Middle East have driven energy prices lower, simultaneously alleviating fears of inflationary pressure. This development could potentially temper expectations for interest rate hikes by the Federal Reserve—a factor that has previously hindered gold’s appreciation.
Nevertheless, gold’s recovery continues to face challenges stemming from U.S. monetary policy. Persistent inflation and the resilience of the U.S. economy have led the market to consider the possibility that the Federal Reserve may maintain a hawkish stance or raise interest rates in December. Higher interest rates generally enhance the appeal of yield-bearing assets, such as U.S. government bonds, thereby dampening interest in gold, which offers no yield. Furthermore, uncertainty surrounding technology stocks—driven by concerns over the scale of investments in artificial intelligence—could potentially trigger volatility in the precious metals market.
As November begins, investor attention will be focused on developments in the Middle East conflict, the movement of the U.S. dollar, and various U.S. economic indicators, including manufacturing activity and employment data. Weakening economic data could dampen expectations for interest rate hikes and pave the way for a further recovery in gold. Conversely, if inflation remains high and the US economy proves resilient, pressure on the precious metal could intensify once again. Therefore, any move by gold toward US$3,903 would require confirmation through subsequent price action before it can be considered a sustained trend reversal. (CP)