New York:Gold prices rebounded on Monday, climbing above $3,940 an ounce, recovering from its lowest level since October 2025. This rise coincides with a significant increase in silver prices, which surpassed $50 an ounce, driven by a fall in oil prices that alleviated inflation concerns ahead of the US midterm elections.

According to Anadolu Agency – English, gold experienced a gain of $66.11, or 1.70%, reaching $3,941.95 per troy ounce by 2015GMT. Despite this increase, gold prices remained below the $4,000 mark, which had been lost during a previous market downturn. Silver, on the other hand, saw a 3.45% rise to $50.58 an ounce after hitting an 11-month low. The percentage gain for silver was approximately twice that of gold, although it remained down 17.07% from a month earlier, in contrast to a 4.78% decline for gold.

The recent selloff in technology stocks, particularly those associated with artificial intelligence, prompted some investors to liquidate gold to cover losses in other areas, adding downward pressure on the precious metal. Investors facing margin calls contributed to the selling.

On the oil front, prices dropped more than 6% on Monday following diplomatic talks between Iranian negotiators and Qatari mediators in Doha. These discussions, aimed at resolving the US-Israeli conflict with Iran, sparked optimism that disruptions to Middle Eastern oil supplies might be alleviated. The decrease in crude oil prices could potentially lower fuel and transportation costs, thus easing one of the inflationary pressures as the US Federal Reserve deliberates over another interest rate hike.

The Federal Reserve recently held its benchmark interest rate steady at 3.75% to 4% after a 10-2 vote on October 28. Policymakers Lisa Cook and Beth Hammack had advocated for a quarter-point increase. The central bank noted that inflation remains high and emphasized its commitment to analyzing incoming economic data in its efforts to achieve its 2% inflation target.