Spot gold rose 0.7% to approximately $3,900.14 per ounce on Monday after falling 3.6% in the previous session, according to Reuters.
Friday's decline pushed gold to its lowest level since October 2025 as higher interest-rate expectations and broad market selling pressured the metal.
Gold is now showing signs of recovery as oil prices fall, easing concerns about inflation and persistently high borrowing costs.
Brent and U.S. crude dropped more than 3% Monday as diplomatic talks involving Iran and Qatar raised hopes for progress toward ending the Middle East conflict.
Higher oil prices have kept inflation fears alive, putting pressure on gold as investors worry the Federal Reserve may keep interest rates elevated.
If cheaper oil helps Treasury yields ease, gold could become more attractive because it does not pay interest.
Dip buyers also returned after the recent selloff, although investors remain cautious ahead of the November 3 U.S. midterm elections and further signals from Federal Reserve officials.
The bottom line: If oil continues to decline and bond yields follow, gold could have room to rebound. However, it is still too early to confirm a lasting trend reversal.
Sources: Reuters and Associated Press.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Commodity prices may change rapidly.