Gold rose to $3,900 an ounce after falling 3.7% and experiencing its worst October in 18 years
Kyiv • UNN
Gold rose 0.7% to nearly $3,900 an ounce after falling 3.7%. Analysts expect market volatility.
World gold prices began to recover on November 2 after falling to their lowest level in a year. The precious metal rose by approximately 0.7%, approaching $3,900 per ounce, amid lower oil prices and buyers returning to the market. Bloomberg reported this, UNN writes.
Details
The previous trading session ended with gold prices falling by 3.7%. As a result, October was the precious metal’s worst month since 2008.
One factor behind the recovery was the decline in oil prices, which eased concerns about inflation. Investors also returned to the market, deciding to take advantage of the price drop.
What affects the price of gold
Oil prices fell ahead of the U.S. midterm elections. Secretary of State Marco Rubio said that President Donald Trump prefers a diplomatic settlement to the conflict with Iran.
At the same time, the risk of a new escalation in the Middle East remains. Trump had previously threatened to resume strikes on Iran after the elections, while Tehran warned of a possible larger-scale response.
The decline in technology stocks is creating additional pressure on gold. Some investors are selling precious metals to offset losses in the stock market.
What analysts expect
Global X ETFs strategist Justin Lin suggested that the decline in gold prices could attract long-term investors and central banks. However, he warned of market volatility.
Saxo Bank analyst Ole Slet Hansen noted that gold needs to return above $4,000 per ounce to improve its short-term prospects.
As of 7:45 a.m. Singapore time, the spot price of gold was $3,899.39 per ounce, up 0.6% from the previous figure.
Silver also rose by 1.3% to $49.76 per ounce. Platinum and palladium posted gains after their previous sharp decline.