Gold firms on softer oil prices, US midterm results awaited

Gold prices rose on Tuesday amid easing oil prices, which have eased inflation worries for investors ahead of key US midterm election results. Spot gold increased 0.2% to $3,934.75 per ounce by 0024 GMT, while US gold futures for December delivery climbed 0.1% to $3,943.20. Oil prices fell about 1% on Tuesday, reaching their lowest level in nearly four weeks, as talks to end the wars in Ukraine and Iran weighed on the market, alongside concerns that recent attacks in both conflicts could disrupt supplies.

Russia is set to hold peace talks with Ukraine and the United States in Abu Dhabi from November 10-11, while Iran and the US remain far from a deal to end their war. Lower oil prices ease inflation concerns and suggest the Federal Reserve may not need to keep interest rates high for a prolonged period, making gold more attractive.

Investors are also watching for a potentially strong Democratic showing in the midterm elections, which could lead to increased volatility in asset prices. India's gold demand is expected to drop to a six-year low in 2026 due to higher prices, while other metals saw modest gains, with silver falling 0.2% to $49.67 per ounce and platinum rising 0.3% to $1,422.15.