Spot Gold rose 0.6% to $3,900.05 an ounce at 20:01 ET (01:01 GMT), while U.S. gold futures gained 0.2% to $3,908.30. Silver advanced 1.4% to $49.83, whereas platinum fell 3.4% to $1,434.65. Spot palladium declined 2.6% to $980.35, while palladium futures added 1% to $986.75. The U.S. Dollar Index fell 0.2% to 101.88.
Gold recovered part of its losses after plunging 3.7% in the previous session, when it reached a one-year low and recorded its worst October performance since 2008. The metal rose as much as 0.7% as investors returned to the market to take advantage of lower prices.
Oil prices fell for a second consecutive session ahead of Tuesday's U.S. midterm elections. Secretary of State Marco Rubio said President Donald Trump favored a diplomatic solution to the conflict with Iran, offering some relief to energy markets and reducing concerns about additional inflationary pressure.
The risk of renewed military escalation remains, however. Trump has repeatedly threatened to resume strikes against Iran after the midterm elections, while Tehran has warned that it could respond more broadly. Several Persian Gulf countries have also expressed concern that another U.S. attack could lead to a more destructive regional conflict.
Precious metals have also faced pressure from a wider selloff in technology shares. Recent declines in equities have led some investors to liquidate gold positions to cover losses elsewhere in their portfolios. U.S. stocks were expected to extend their declines on Monday as concerns about the artificial intelligence investment trade weighed on Wall Street.
Although bargain buying has supported gold's rebound, continued volatility in technology stocks and uncertainty over the U.S.-Iran conflict remain risks to a sustained recovery.
Sources: Investing.com News.