Gold prices fell on Tuesday, November 3, after rising by approximately 2% from an annual low, amid declining oil prices, while concerns about inflation driven by energy prices kept investors on edge ahead of the U.S. midterm elections. UNN reports this, citing Reuters.
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The spot price of gold fell 1.1% to $3,904.69 per ounce by 10:02 GMT (12:02 Kyiv time). U.S. gold futures for December delivery fell 1.4% to $3,914.70.
Oil prices rose by more than $1 after an Iranian official said that a deal to end the war was still a long way off, while the United States struck Iran's Qeshm Island, fueling concerns about risks to energy supplies that supported high energy prices and strengthened the case for tighter monetary policy.
The United States carried out strikes on Iran’s Qeshm Island in the Strait of Hormuz03.11.26, 07:05
"Rising oil prices generally intensify inflationary pressures, and as inflationary pressures rise, expectations for interest rates generally increase, which negatively affects gold. That is exactly what we are seeing today," said Nitesh Shah, a commodities strategist at WisdomTree.
Higher interest rates increase the costs of storing gold, which generates no income. According to CME's FedWatch tool, traders currently put the probability of the U.S. Federal Reserve raising interest rates in December at 75%.
This is taking place as important midterm elections begin in the United States.
"A Democratic victory in the election would likely create more problems for the development of AI data centers and for the technology sector overall. Any further pressure on the technology complex from increased regulatory scrutiny could also affect gold, as positions continue to be reduced to cover losses in other areas," said Tim Waterer, chief market analyst at KCM Trade.
Meanwhile, the World Gold Council cut its forecast for growth in gold investment this year to 200 metric tons from 400 tons previously, citing weaker demand for bars and coins, although it raised its estimate for central-bank purchases.
Among other metals, spot silver fell 3.4% to $48.93, platinum dropped 2.1% to $1,419.07, and palladium fell 2.9% to $940.75.
The spot price of gold fell 3.6% on Friday, October 30, reaching its lowest level in a year—since October 2025.