Gold gains as lower oil prices ease inflation fears

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1. 52m ago

   Gold Gains as Lower Oil Prices Ease Inflation Fears

   Gold prices climbed as lower crude oil prices helped alleviate investor inflation concerns. Spot gold rose 0.9% to $4,102.25 per ounce, and U.S. gold futures for December delivery increased 0.9% to $4,111.60. Market participants awaited upcoming U.S. inflation data that could influence the Federal Reserve rate outlook. Concurrently, a softer U.S. dollar and easing bond yields contributed to the precious metal's upward movement. Bullion previously recorded a weekly gain of about 5% following the U.S. midterm elections.

   Why it matters

   The recent movement in precious metals follows a Democratic sweep of both chambers of Congress during the U.S. midterm elections. This political shift sparked optimism regarding a resolution to the conflict involving the United States, Israel, and Iran, which in turn depressed crude oil markets. Analysts note that reduced geopolitical tensions and lower energy costs could curb inflationary pressures and alter the trajectory of central bank monetary tightening.

   What is confirmed

   • Spot gold rose 0.9% to $4,102.25 per ounce by 1125 GMT on Monday.
   • U.S. gold futures for December delivery gained 0.9% to $4,111.60.
   • Bullion gained about 5% the previous week after Democrats won control of both chambers of Congress in the U.S. midterm elections.
   • Oil prices fell on Monday after U.S. President Donald Trump downplayed the likelihood of new strikes on Iran.
   • Gold prices fell 0.3% on Friday after stronger-than-expected U.S. payrolls data.

   Still unconfirmed

   • Attacks on ships near the Strait of Hormuz kept supply concerns in focus.
   • The Democratic sweep could bring more scrutiny of the artificial intelligence boom, which would help contain inflation and temper Federal Reserve tightening, according to independent financial markets analyst Nikos Tzabouras.

   What to watch next

   • Release of upcoming U.S. inflation data later in the week
   • Potential Federal Reserve policy shifts regarding December rate hikes
   • Developments concerning U.S.-Iran relations and shipping traffic near the Strait of Hormuz
   Sources used for this update (14)

   1. seekingalpha.com — Patient Capital Management Q3 2026 Commentary
   2. www.mitrade.com — Weekly Market Wrap: AI spending hit a reality check — and Starlink rewrote the telecom trade
   3. www.marketscreener.com — Global Stocks Fall on Higher Oil Prices, AI Pullback | MarketScreener
   4. www.cnbc.com — Oil today: Iran, US, crude, wti, brent, trump
   5. www.tradingview.com — Gold, silver prices fall on MCX: Why precious metals are under pressure today
   6. Reuters — Gold gains as lower oil prices ease inflation fears
   7. Bloomberg.com — Gold Holds Decline as US Jobs Data Fan December Rate Hike Bets
   8. CNBC — Gold drops 1% as strong U.S. payrolls boost dollar, yields
   9. KITCO — Democrats' midterm sweep gives gold a boost, but the Federal Reserve still holds the cards
   10. Investing.com — Gold rebounds as weaker dollar offsets bets on December Fed rate hike
   11. www.cnbc.com — Gold gains as lower oil prices temper inflation fears; U.S. inflation in focus
   12. www.marketscreener.com — S&P/TSX Composite Index Climbs Higher, Led by Gains in Energy Shares
   confidence 95%