On November 2, international gold prices rebounded above $3,900 per ounce, following gold's largest single-month decline since 2008, drawing some investors to buy on the dip.
As of 12:21 Beijing time on November 2, spot gold rose 0.8% to $3,907.58 per ounce, while U.S. gold futures gained 0.5% to $3,916.32. In the prior trading session, gold prices had plunged 3.7%, touching a one-year low.
Among other precious metals, spot silver climbed 2.2% to $50.17 per ounce, while platinum fell 3.4% and palladium dropped 2.6%.
Factors driving gold's rebound also include the continued pullback in oil prices. As U.S. President Trump leans toward resolving the Iran conflict through diplomatic channels, market concerns over further disruptions to Middle East energy supplies and rising inflation have eased somewhat. However, the risk of military conflict escalating again after the U.S. midterm elections still persists.
Meanwhile, recent sustained declines in technology stocks have led some investors to sell gold to offset losses from equity investments, adding further pressure on gold prices.
Analysts at ANZ believe that elevated U.S. Treasury yields and a stronger dollar remain the primary factors limiting gold's short-term upside. Although the high interest rate environment weighs on gold, investment demand remains resilient.
Data shows that global gold ETFs still attracted over 50 tonnes of inflows in September, indicating that the traditional negative correlation between gold prices and U.S. Treasury yields has weakened somewhat. ANZ expects gold to trade in a range around $4,000 per ounce in the near term, and it may fall below that level again before forming a more sustained upward trend.
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