Gold Rebounds on Easing Inflation Concerns
Gold prices rose more than 1% to above $3,940 an ounce on Monday, recovering from an over one-year low of $3,870.27 hit on Friday, as falling oil prices eased inflation concerns, while investors turned their attention to the November 3 US midterm elections. Gold had come under pressure on Friday as a sharp selloff in technology and AI stocks triggered a dash for cash, forcing investors to liquidate safe-haven assets. However, optimism over a potential US-Iran diplomatic breakthrough and renewed doubts about the sustainability of the AI boom have prompted some reassessment of the Federal Reserve's tightening outlook. Meanwhile, oil prices tumbled after Iranian and Qatari officials held a third consecutive day of talks aimed at ending the US-Israeli war on Iran. Lower oil prices could ease inflationary pressures and reduce expectations of interest rates staying higher for longer, lowering the opportunity cost of holding non-yielding gold.
Gold prices rose more than 1% to above $3,940 an ounce on Monday, recovering from an over one-year low of $3,870.27 hit on Friday, as falling oil prices eased inflation concerns, while investors turned their attention to the November 3 US midterm elections. Gold had come under pressure on Friday as a sharp selloff in technology and AI stocks triggered a dash for cash, forcing investors to liquidate safe-haven assets. However, optimism over a potential US-Iran diplomatic breakthrough and renewed doubts about the sustainability of the AI boom have prompted some reassessment of the Federal Reserve's tightening outlook.
Meanwhile, oil prices tumbled after Iranian and Qatari officials held a third consecutive day of talks aimed at ending the US-Israeli war on Iran. Lower oil prices could ease inflationary pressures and reduce expectations of interest rates staying higher for longer, lowering the opportunity cost of holding non-yielding gold.