Gold rises early Monday as inflation fears eased on weaker oil prices after U.S. President Donald Trump said he was highly unlikely to order more attacks on Iran.
Inflation has climbed alongside oil prices since the U.S.-Israel war with Iran began earlier this year. Investors are awaiting a new set of inflation data this week, with the publication of the October consumer price index data on Tuesday and the producer price index on Friday. The Federal Reserve closely watches both inflation and labor market data when setting monetary policy. On Friday, the key U.S. monthly jobs report for October exceeded economists’ forecasts.
December gold gained 4.5% last week to settle at $4,074.90 an ounce on Comex, though the front-month contract fell 0.9% Friday. Bullion dropped 6.9% last month after losing 6.6% in September and rising 9.1% in August. It’s down 6.1% so far this year after rallying 64% in 2025. The December contract is currently up $50.60 (+1.24%) an ounce to $4125.50 and the DG spot price is $4119.60.
The October jobs report indicated that the labor market is resilient, keeping the likelihood high that the Fed will go ahead with an anticipated interest rate hike in December to combat inflation. The inflation reports this week will also provide further guidance.
U.S. employers added 165,000 jobs last month, topping a consensus estimate of 65,000. The unemployment rate also stood at 4.1%, down from 4.2% in September.
More than 80% of the investors tracked by the CME FedWatch Tool are betting that the Fed will rase rates by 25 basis points in December, with the rest expecting rates to remain unchanged. Last month, the Fed kept interest rates at 3.75% to 4.00%, though the vote included two dissentions. The Fed raised its benchmark rate by 25 basis points in September.
Higher interest rates are considered bearish for gold, making the yellow metal a less attractive asset for investment.
Trump told CNN Sunday that as long as there’s progress in negotiations between the U.S. and Iran over Tehran’s nuclear program and reopening the critical oil waterway the Strait of Hormuz, it’s unlikely he will order new strikes. Benchmark Brent oil futures extended last week’s 16% drop early Monday.
December silver futures added 5.4% last week to settle at $51.94 an ounce on Comex, though the front-month contract decreased 0.8% Friday. The most-active contract touched a record above $115 in January. Silver plummeted 19% last month after falling 9.6% in September and climbing 16% in August. It is down 26% so far this year after rising 141% in 2025. The December contract is currently up $0.603 (+1.16%) an ounce to $52.545 and the DG spot price is $52.68.
Spot palladium rose 3.5% last week to $1,026.50 an ounce but dropped 2.2% Friday. Palladium fell 18% last month after losing 11% in September and rallying 5.7% in August. It’s down 36% in 2026 after rising 74% last year. Currently, the DG spot price is up $10.90 an ounce to $1038.00.
Spot platinum gained 7.3% last week to $1,542.00 an ounce after increasing 0.9% Friday. Platinum slid 16% last month after falling 4.6% in September and increasing 7.5% in August. Platinum is down 24% so far this year after increasing 122% in 2025. The DG spot price is currently up $29.30 an ounce to $1568.20.
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