Big jump in gold prices

Gold prices rebounded on Monday after falling to a one-year low in the previous session. Falling oil prices have helped the gold market, easing concerns about inflation. Investors are also keeping an eye on this week's US midterm elections and their potential economic and fiscal implications.

The price of gold per ounce rose 0.7 percent to $3,900.14 per ounce in the spot market at around 4:00 PM Bangladesh time on Monday. Earlier, the price fell 3.6 percent on Friday to its lowest level since October 2025. On the other hand, the price of US gold futures for December delivery rose 0.3 percent to $3,909.20 per ounce.

Analysts said a sharp drop in technology and artificial intelligence (AI) stocks led investors to hold onto cash on Friday, forcing them to sell safe-haven assets like gold to cover losses.

Independent financial market analyst Nikos Zaboras said optimism about the prospects for a diplomatic settlement between the United States and Iran and renewed concerns about the growth of the AI ​​sector have created uncertainty about how much further the Federal Reserve will need to raise interest rates. This has given gold prices a chance to rebound. However, this upward trend may not last long.

Oil prices fell more than 3 percent on Monday, after a third day of talks between Iranian and Qatari officials aimed at ending Iran's war with the United States and Israel.

Lower oil prices ease inflationary pressures, reducing the risk of high interest rates for a long time. And as gold is an interest-free asset, the opportunity cost of holding it could increase demand for the metal.

Meanwhile, the US midterm elections are set to be held on November 3. Investors are cautious about how the results of these elections could affect the country's fiscal policy and overall market conditions.

Nikos Zaboras said that the market could be cautious ahead of the US midterm elections due to the possibility of a change in the Middle East conflict. In addition, the fall in technology stocks forced investors to sell gold to cover losses in other sectors. If this trend continues, it could put pressure on gold prices.

Other precious metals also showed an upward trend on Monday. Silver rose 2.5 percent to $50.35 an ounce in spot trade, after falling below $50 for the first time in 11 months on Friday.

Platinum also rose 0.01 percent to $1,431.7 an ounce. Palladium rose 0.3 percent to $979.25 an ounce. Earlier on Friday, platinum and palladium prices fell to their lowest levels in 13 and 17 months, respectively.

Source: Reuters