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Source: Newasmaker.id
Global gold prices continued to climb during Monday’s trading session (November 2, 2026), extending a recovery following a sharp sell-off at the end of October. The precious metal’s rise was bolstered by a decline in global oil prices, which fueled hopes that inflationary pressures in the United States might be easing. Furthermore, bargain-hunting has picked up after gold recorded its steepest monthly decline since 2008. This shift in sentiment has helped gold regain investor interest amidst ongoing global economic uncertainty.
Gold’s recovery has been further supported by geopolitical developments in the Middle East—specifically, growing prospects for a diplomatic resolution to the conflict involving the United States and Iran. The administration of President Donald Trump is reportedly prioritizing diplomatic channels over further military action. This optimism has driven a decline in Brent crude oil prices, which had previously spiked due to concerns over potential disruptions to energy supplies through the Strait of Hormuz. Lower energy costs could help alleviate inflationary pressure and temper market concerns regarding potential interest rate hikes by the Federal Reserve.
Nevertheless, gold’s upward momentum faces challenges from the resilience of the U.S. economy and the trajectory of the Federal Reserve’s monetary policy. Persistent high inflation has led market participants to factor in the possibility that interest rates may remain elevated for longer. Meanwhile, concerns surrounding the scale of investments in artificial intelligence—and the resulting pressure on technology stocks—have added to uncertainty in global financial markets. Such conditions could trigger a reallocation of investment capital, potentially benefiting gold, though the risk of sell-offs driven by liquidity needs remains.
As trading begins in November, investors will be closely monitoring energy prices, the movement of the U.S. dollar, and key U.S. economic indicators that could influence the Federal Reserve’s decisions in December. Should inflationary pressures show signs of cooling and the U.S. dollar continue to weaken, gold may well extend its current rally. However, if US economic data once again demonstrate resilience and fuel expectations for interest rate hikes, the rally in gold risks being stalled. Consequently, the sustainability of the precious metal’s recovery remains heavily dependent on shifts in monetary policy expectations and the stability of global market sentiment. (CP)