Gold firms on softer oil prices, US midterm results awaited

Gold prices edged higher in early Asian trade on Wednesday as softer oil prices eased inflation concerns, while investors awaited US midterm election results and key ​labour market data for policy cues.

Fundamentals

Spot gold was up 0.2% at $3,934.75 ‌per ounce by 0024 GMT, while US gold futures for December delivery rose 0.1% to $3,943.20.

Oil prices eased about 1% on Tuesday to their lowest in nearly four weeks, as the market weighed ​talks to end the wars in Ukraine and Iran against worries that recent ​attacks in both conflicts could further disrupt supplies.

Russia will hold three-way ⁠peace talks with Ukraine and the United States in Abu Dhabi from November 10-11, ​the Kremlin confirmed on Tuesday.

Iran and the United States are still far from ​a deal to end their war, a senior Iranian official told Reuters on Tuesday, while mediator Qatar stepped up efforts to bridge differences and avert a renewed escalation after the US midterm elections.

Lower ​oil prices ease inflation concerns and reinforce expectations that the Federal Reserve may ​not need to keep interest rates elevated for an extended period, boosting the appeal of non-yielding bullion.

*Investors ⁠were bracing for a potentially strong Democratic showing during Tuesday’s midterm elections that could pave the way for greater volatility in asset prices.

Traders currently see a 78% chance that the Fed will raise rates in December, according to CME’s FedWatch tool.

Elsewhere, ​India’s gold demand is ​expected to fall ⁠to a six-year low in 2026, as elevated prices weigh on jewellery sales and investment demand moderates, the World Gold Council (WGC) said on ​Tuesday.

Among other metals, spot silver fell 0.2% to $49.67 per ​ounce, platinum ⁠rose 0.3% to $1,422.15 and palladium gained 0.5% to $938.49.