Gold rises on softer oil; Markets parse Fed signals

Gold recovered on Monday as softer oil prices eased some inflation pressure, while investors weighed Federal Reserve comments on US rates, Business Recorder reported. Spot bullion was up 0.7% at $3,900.90 per ounce by 0440 GMT, following a one-year low in the prior session; December US futures added 0.3% to $3,909.70. Silver gained 1.8% to $49.97, platinum rose 0.1% to $1,432.63 and palladium was little changed at $976.31.

The rebound followed Friday’s 3.5% plunge, which took gold below $4,000 per ounce to its lowest level since October 2025. Oil fell more than 3% at the start of the week, while three Fed officials argued for further rate increases after policymakers kept borrowing costs unchanged last week; traders were pricing in a 73% chance of a December hike, according to CME’s FedWatch Tool. Analysts cited technical selling and liquidity concerns as pressures on gold in the near term.