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

Spot gold rose 0.8% to US$3,903.90 per ounce by 0757 GMT, after hitting a one-year low in the previous session. US gold futures for December delivery gained 0.4% to US$3,913.20.

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

"We are just getting a bounce after the sell-off, 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, a 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.

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.

Investors are now focusing on the Nov 3 US midterm elections and their potential impact on fiscal policy and broader market sentiment.

Meanwhile, a trio of Fed officials made the case last 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 at which policymakers left short-term borrowing costs steady.

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

Spot silver climbed 2.5% to US$50.33 per ounce, platinum steadied at US$1,431.50, and palladium gained 0.9% to US$986.00.

Uploaded by Tham Yek Lee