Gold climbs above $4,100 as weaker dollar and falling oil prices lift precious metals

Gold and silver prices advanced on Monday, November 9, extending their recovery as declining oil prices eased inflation concerns and a weaker US dollar supported demand for precious metals.

Gold climbed above $4,100 an ounce, building on last week's gains, while silver also strengthened as investors assessed the outlook for Federal Reserve interest rates ahead of fresh US inflation figures.

Price overview

As of 09:00 GMT, spot gold traded near $4,110 an ounce, gaining approximately 1%. while US gold futures advanced toward $4,120 an ounce.

Spot silver rose toward $52.50 an ounce, gaining around 1%, while silver futures approached $53 an ounce.

Lower oil prices support gold

Crude oil prices declined amid growing expectations of diplomatic progress between Washington and Tehran, reducing concerns about another inflationary shock.

Lower energy costs could ease pressure on central banks to maintain restrictive monetary policies, benefiting non-yielding assets such as gold.

Strong US employment complicates outlook

Friday's US employment report showed that the economy added 165,000 jobs in October, exceeding expectations of 65,000, while unemployment declined to 4.1%.

The figures increased market-implied expectations of a December Federal Reserve interest rate increase to approximately 79%.

Higher borrowing costs could limit further gains in precious metals.

US inflation data in focus

Investors are awaiting Tuesday's consumer price index report, followed by producer inflation figures on Friday.

Stronger inflation readings could support the dollar and Treasury yields, while softer figures may strengthen demand for gold and silver.

Market outlook

Gold faces immediate resistance around $4,135, followed by $4,150, while support stands near $4,070.

Silver could test resistance around $53.00, with a stronger barrier near $53.50.

The direction of both metals will depend on inflation expectations and developments in the Middle East.