Why is gold price rising today? Gold bounces back to $3,903 after dropping to one-year low

Gold price is moving upwards on Monday. The previous sessions saw gold sell off after oil prices triggered gold fall below the key level of $4,000 per ounce level. The fall of oil prices have helped ease concerns about inflation. The possibility of central banks keeping the interest rates higher for longer time has also reduced. Spot gold gained 0.8% to $3903.90 an ounce at 0757 GMT. US December gold futures have increased by 0.4% to $3913.20. The investors are focusing on comments of the Federal Reserve officials and the developments in US Iran war. The US mid-term elections on the November 3 as well as employment data will also have impact in the coming weeks.

The gold started the week with a rebound after falling 3.5% in the last session. The price had hit a new low since October 2025. Spot gold rose by 0.8% to $3,903.90 per ounce while December US gold futures gained by 0.4% to $3913.20.

Why is gold price rising today?

Oil prices dropped over 3% after it was reported that Iranian negotiators met with Qatari brokers in Doha on Sunday for the third day in a row. Discussions were made to try and come to an agreement to stop the US-Israeli war on Iran. “We haven’t decided on whether to resume attacks on Tehran,” said US Secretary of State Marco Rubio.

WTI Crude fell around 2% to nearly $100 after reaching $104 on Friday. This was the highest seen in 5 months. Lower oil prices means less fears of inflation and long term rises in interest rates. This helps gold as there is no interest received on bullion.

Fed Signals and US elections

Some Federal Reserve officials told on Friday that they believe more hikes should be implemented to control inflation. The comments came after last week’s policy meeting where the short term borrowing rates remained unchanged.

The investors are also focusing on US midterm elections on November 3 as it may affect fiscal policy and the dollar. Prediction markets are showing a 68% chance of a Democrat sweep, according to ING analysts. This can pull the dollar down over the concerns of government shutdown and debt ceiling. Employment data will also play a role. Investors are looking at the September JOLTS job openings, October ADP employment change and Friday’s NFP (Nonfarm Payrolls).