Gold rebounds from one-year low as oil prices ease

ISTANBUL

Gold rebounded from a one-year low on Nov. 2 as lower oil prices eased inflation concerns and buyers returned after three consecutive weeks of losses.

Spot gold rose 0.73 percent to $3,904.20 an ounce in early trading, recovering from a low of $3,870 on Oct. 30.

In Türkiye, gold was selling for around 6,275 Turkish Liras per gram.

Domestic prices reflect both international bullion prices and the lira’s exchange rate against the dollar.

Oil prices fell as diplomatic efforts to prevent renewed fighting between the United States and Iran continued ahead of the U.S. midterm elections.

Lower bond yields and the dollar’s retreat from recent highs also supported gold.

The metal had come under pressure last week as concerns over energy-driven inflation strengthened expectations of further U.S. interest rate increases.

A global stock sell-off driven by concerns over artificial intelligence investment also prompted investors to sell gold to cover losses elsewhere.

The U.S. Federal Reserve held interest rates steady on Oct. 28, but traders were still pricing in about a 75 percent chance of an increase in December, according to CME FedWatch.

Higher interest rates tend to weigh on gold, which pays no interest, by making interest-bearing assets more attractive.

Investors are awaiting U.S. nonfarm payrolls data, due on Nov. 6, for further indications of the Fed’s next move.