Gold and silver fall as oil rebound revives inflation concerns ahead of US jobs report

Gold and silver prices declined on Friday, November 6, as a recovery in oil prices revived inflation concerns and strengthened expectations that the Federal Reserve could keep interest rates elevated for longer.

The precious metals also faced selling pressure amid a sharp retreat in technology stocks, although gold remained on course for its strongest weekly performance since late August.

Price overview

During Friday's morning trading, spot gold fell approximately 1% to $4,047.19 an ounce.

US gold futures for December delivery declined around 1.4%.

Spot silver traded near $51.60 an ounce, extending its retreat from Thursday's highs.

Oil rebound weighs on precious metals

Crude oil prices recovered more than 1% as investors reassessed supply risks associated with the Iran war, reversing part of Wednesday's sharp decline.

Higher energy costs raised concerns that inflation could remain elevated, complicating the Federal Reserve's efforts to stabilize consumer prices.

Technology selloff triggers liquidation

The sharp decline in US semiconductor and technology stocks also weighed on precious metals.

Investors liquidated some gold holdings to raise cash and cover margin requirements, temporarily weakening the metal's traditional safe-haven appeal.

US employment report in focus

Investors are awaiting October's US nonfarm payrolls report, scheduled for release at 13:30 GMT.

Interest rate markets assigned approximately a 67% probability to another Federal Reserve rate increase in December.

Stronger employment figures could reinforce expectations of tighter monetary policy, while weaker data may support gold and silver.

Market outlook

Gold faces immediate support around $4,035, followed by the psychological $4,000 level.

Resistance stands near $4,100, with a stronger barrier around $4,145.

Silver could test support around $51.20, while resistance remains near $52.20.