Gold edges up to $3,934.75 as softer oil prices ease inflation fears
Gold opened Wednesday's Asian session at $3,934.75 an ounce, up 0.2%, as a roughly 1% slide in oil prices to near four-week lows eased inflation worries and reinforced bets that the Federal Reserve may not need to hold rates high for long. US gold futures for December delivery added 0.1% to $3,943.20.
The oil move rests on diplomacy as much as supply. The Kremlin confirmed Russia will hold three-way peace talks with Ukraine and the United States in Abu Dhabi on 10-11 November, while a senior Iranian official said Iran and the United States remain far from a deal to end their war, with mediator Qatar working to bridge the gap and avert a renewed escalation after the US midterms.
Investors were bracing for a potentially strong Democratic showing in Tuesday's midterm elections that could bring greater volatility to asset prices. Traders put a 78% chance on a Fed rate rise in December, according to CME's FedWatch tool, a call that keeps non-yielding bullion's appeal tied to the inflation outlook.
Demand is thinning where it matters most for physical gold. The World Gold Council said 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. Among other metals, spot silver slipped 0.2% to $49.67 an ounce, platinum rose 0.3% to $1,422.15 and palladium gained 0.5% to $938.49.
