Gold gains over 1% on softer oil, weaker dollar

Gold rose 1.29% to $4,118.28 an ounce on Monday, November 9, as lower oil prices and a softer US dollar supported bullion, Mettis Global reported. Oil eased after US President Donald Trump signalled further military action against Iran was unlikely while diplomatic efforts continued, reducing concerns about possible supply disruption.

Cheaper energy helped cool inflation expectations and lowered the relative cost of holding gold, which pays no yield. However, October employment data showed faster job growth and unemployment at 4.1%, lifting the market-implied chance of a December Federal Reserve rate increase to 79% from 71%, according to CME's FedWatch tool, as reported by CNBC. Investors were watching for US CPI on Tuesday and PPI on Friday; stronger inflation could support the dollar and weigh on bullion. Silver gained 2.8% to $53.31 an ounce, platinum advanced 1.6% to $1,556.14, and palladium rose 2.1% to $1,044.28.