Investing.com -- Gold prices rose on Monday as lower oil prices eased some inflation concerns and bargain hunters returned after bullion suffered its steepest monthly decline since 2008, although renewed geopolitical risks and a global technology stock selloff continued to cloud the outlook.
At 20:01 ET (01:01 GMT), spot gold rose 0.6% to $3,900.05 an ounce, while U.S. gold futures gained 0.2% to $3,908.30. Silver advanced 1.4% to $49.83 an ounce, while platinum fell 3.4% to $1,434.65. Spot palladium declined 2.6% to $980.35, while palladium futures gained 1% to $986.75. The U.S. dollar Index fell 0.2% to 101.88.
Gold recovered some ground after plunging 3.7% in the previous session, which pushed prices to a one-year low and capped the metal's worst October performance since 2008. Bullion gained as much as 0.7% to approach $3,900 an ounce as investors took advantage of lower prices.
Oil prices declined for a second consecutive session ahead of Tuesday's U.S. midterm elections, with Secretary of State Marco Rubio saying President Donald Trump favoured a diplomatic solution to the conflict with Iran.
The prospect of an agreement offered some relief to energy markets and eased concerns about further inflationary pressures.
However, the risk of renewed military escalation remains. Trump has repeatedly threatened to resume strikes against Iran after the midterm elections, while Tehran has warned of a broader retaliatory response.
Several Persian Gulf countries have also voiced concerns that another U.S. attack could trigger a more destructive regional conflict.
A wider selloff in technology shares has added another source of pressure on precious metals. Recent equity-market declines have prompted investors to liquidate gold holdings to cover losses elsewhere in their portfolios.
U.S. stocks were also poised to extend their declines on Monday, tracking a Wall Street selloff driven by renewed concerns over the artificial intelligence investment trade.
The technology-led rout last week contributed to gold's slide to a one-year low, as investors sold bullion alongside other assets to meet losses in equities.
Although bargain buying has helped the metal recover some ground, further volatility in technology shares and uncertainty surrounding the U.S.-Iran conflict continue to pose risks to its recovery.
Original Article
Gold rebounds toward $3,900 as dip buyers emerge, Iran risks persist
Oil falls as Trump favours Iran diplomacy before midterm elections
