Precious Metal

Gold Rebounds 2% From a One-Year Low as Oil Slides and Silver Climbs Back Above $50

Gold rose about 2% Monday, recovering from Friday's one-year low as falling oil eased inflation worries, while silver gained nearly 4% to trade back above $50 an ounce.

Nov 02, 2026 - 12:26

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Gold prices rebounded on Monday, November 2, 2026, a trading day after falling to their lowest level in a year, as a steep drop in oil prices eased inflation worries and trimmed bets on a December interest rate increase by the Federal Reserve. Spot gold was up 2.4% at $3,966.71 an ounce and U.S. gold futures for December delivery were up 2.1% at $3,978.70, CNBC reported, citing Reuters. December gold futures were near $3,978.90 at about 12:05 p.m. ET, up about $80 from Friday's settlement of $3,898.90, according to Yahoo Finance data.

Gold ended Friday 3.6% lower after hitting its lowest level since October 2025, Reuters reported. FXStreet said the metal hit a fresh yearly low of $3,870 on Friday and finished October down 6.87%.

Why gold bounced

Oil prices fell more than 6% after Iran and Qatar held a third consecutive day of talks aimed at ending the war on Iran, and lower crude prices reduced expectations that U.S. interest rates would stay higher for longer, which supported non-yielding bullion, according to Reuters.

"Weaker oil prices have provided some relief ... in terms of reducing inflation concerns. But the market is still expecting a December rate hike from the Fed, although those odds have lessened a little bit over the last couple of trading sessions," Peter Grant, vice president and senior metals strategist at Zaner Metals, told Reuters. Traders saw a 76.6% chance of a U.S. rate hike in December, down from 80% a week earlier, according to CME Group's FedWatch tool.

Analysts said Friday's decline was tied to a selloff in technology and AI-linked stocks that spilled across markets, as margin calls led investors to sell safe-haven assets such as gold. Gold's 14-day Relative Strength Index, a gauge of whether an asset is overbought or oversold, rose to about 37 on Monday from below 30 on Friday, indicating the metal had moved out of technically oversold territory, Reuters said.

Not all analysts expect the rebound to last. "Optimism around a U.S.-Iran diplomatic breakthrough and renewed concerns over the viability of the AI boom are allowing some doubts to creep in over how far the Fed will need to go with tightening, and that is facilitating a rebound. But the bounce may prove short-lived," independent financial markets analyst Nikos Tzabouras said in an earlier version of the Reuters report.

Silver leads the recovery

Spot silver climbed 3.7% to $50.91 an ounce as of 10:49 a.m. ET after breaking below $50 in the previous session for the first time since late November 2025, Reuters reported. December silver futures were near $51.02 at about 12:05 p.m. ET, up about 3.9% from Friday's settlement, Yahoo Finance data show. Precious metals dealer USAGOLD put the gold-to-silver price ratio near 76.5 on Monday, down from roughly 78 at Friday's close.

Spot platinum rose 1.9% to $1,457.96, while palladium was steady at $976.13, after the two metals bounced from their lowest levels in 13 and 17 months, respectively, on Friday, according to Reuters.

Funds and miners

As of about 12:15 p.m. ET, the SPDR Gold Shares fund was up about 2.2% and the iShares Silver Trust about 3.1%, while the VanEck Gold Miners ETF rose about 3.9% and Newmont gained about 3.1%, according to Yahoo Finance data.

Midterms and jobs data ahead

Attention is shifting to the November 3 U.S. midterm elections and their potential effect on fiscal policy, geopolitics and market sentiment, Reuters said. "The fiscal backdrop in the US is unlikely to change significantly enough to make a difference for gold. Deficits should persist no matter the outcome of the midterms, suggesting that the US debt and interest burden should remain a longer-term supportive factor for gold," said Julius Baer analyst Carsten Menke. The October U.S. payrolls report is due Friday.