Gold firms on softer oil prices, US midterm results awaited

Gold gained modestly in Asian trading on Wednesday as weaker oil prices eased inflation worries, Business Recorder reported. Spot bullion added 0.2% to $3,934.75 an ounce by 0024 GMT, while December US futures advanced 0.1% to $3,943.20. Investors were also watching for US midterm election results and labour-market figures for clues about monetary policy.

Oil fell about 1% on Tuesday to its lowest level in almost four weeks, amid assessments of peace efforts involving Ukraine and Iran and the risk of supply disruptions. Lower oil prices can ease inflation concerns and strengthen expectations that the Federal Reserve might not need to keep rates high for long, supporting demand for gold, which does not pay interest. Traders put the chance of a December Fed rate increase at 78%, according to the CME FedWatch tool. The World Gold Council also said India’s gold demand is expected to reach a six-year low in 2026 as high prices weigh on jewellery and investment purchases.