Gold rises on softer oil; Markets parse Fed signals

By Sukanya Mitra

Nov 2 (Reuters) - Gold prices bounced on Monday, after a selloff in the previous session, as weaker oil prices tempered inflation concerns, while investors assessed comments from the Federal Reserve for clues on the path of US interest rates.

Spot gold

Bullion slumped 3.5% to its lowest since October 2025 on Friday, falling below its key $4,000 per ounce level amid a selloff in technology stocks that led to the forced sale of safe-haven assets such as gold, and margin calls.

"We're just getting a bounce after the selloff, along with oil prices coming off to start the week, which is providing a little bit of a relief for precious metals generally," said Kyle Rodda, senior financial market analyst at Capital.com.

Oil prices fell more than 3% after Reuters reported that Iranian negotiators were in Doha on Sunday for a third consecutive day of talks with Qatari mediators aimed at pushing for a deal to end the US-Israeli war on Iran. O/R

Elevated energy prices often raise the expectation that the Fed will keep interest rates higher for longer, increasing the opportunity cost of holding non-yielding bullion.

Meanwhile, a trio of Fed officials made the case on Friday for more interest rate increases to combat high levels of inflation, in the first round of commentary made by central bankers after last week's monetary policy meeting that saw short-term borrowing costs left steady.

Traders are pricing in about a 73% chance of a rate hike in December, according to the CME's FedWatch Tool.

"Gold faces a difficult near-term environment in which technical selling and liquidity concerns are overshadowing its longer-term investment appeal," said Ole Hansen, head of commodity strategy at Saxo Bank, in a note.

Spot silver climbed 1.8% to $49.97, platinum gained 0.1% to $1,432.63 and palladium steadied at $976.31.