DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Spot gold and silver climbed sharply in late U.S. trading Monday, helped by a weaker dollar and plunging crude oil prices as investors weighed renewed hopes for diplomacy in the conflict between the U.S. and Iran. The energy retreat eased some inflation anxiety ahead of Tuesday’s consumer price index report.

Spot gold traded near $4,140.40 an ounce, gaining $69.40, or 1.70%. Spot silver outpaced gold, rising $1.350, or 2.60%, to trade near $53.320 as improving financial market sentiment encouraged renewed buying.

Gold extended its recovery after sharp fluctuations during the previous week. Democrats’ victories in the U.S. midterm elections initially pushed Treasury yields and the dollar lower, but stronger employment figures later revived expectations that the Federal Reserve could tighten monetary policy again.

The October nonfarm payrolls report showed an increase of 165,000 jobs, far above expectations for approximately 65,000. Unemployment declined to 4.1% from 4.2%, while average hourly earnings rose 0.4% for the month and 3.1% annually.

August and September payroll figures were revised upward by a combined 84,000 jobs, adding to evidence of resilient labor market conditions. The report strengthened expectations for another Federal Reserve interest rate increase despite recent financial market volatility and falling energy prices.

Interest rate futures showed an approximately 82.2% probability of an increase of 25 basis points in December. The benchmark 10 year Treasury yield traded near 4.86%, while the more policy sensitive two year yield stood around 4.55%.

Investors are now focused on the Labor Department’s October consumer price index report, scheduled for Tuesday at 8:30 a.m. EST. Economists expect headline consumer prices to increase approximately 0.3% for the month after rising 0.6% in September.

Traders will closely watch core inflation, which excludes food and energy, for signs that underlying price pressure is moderating. A softer reading could weaken expectations for a December rate increase, while stronger inflation could reinforce the implications of Friday’s employment surprise and pressure precious metals.

The remaining economic calendar includes weekly initial jobless claims Thursday and the October producer price index Friday, both scheduled for 8:30 a.m. EST. Treasury markets will close Wednesday for Veterans Day, while stock markets will remain open.

Geopolitical developments also drove commodity trading Monday. President Donald Trump downplayed the possibility of renewed large scale military strikes against Iran as negotiations continued, prompting traders to remove some of the risk premium built into crude oil prices.

Brent crude futures settled down $5.75, or 5.85%, at $92.57 a barrel, while Nymex WTI crude dropped $3.98, or 4.38%, to $86.85. Brent extended its decline after settlement, falling more than $7 a barrel at one point after losing roughly 16% during the previous week.

The dollar index declined approximately 0.3% toward 101.88 after Friday’s strong rally, offering additional support to gold and silver. Its retreat remained limited by expectations for higher U.S. interest rates, leaving precious metals caught between a softer currency, elevated Treasury yields and unresolved inflation risks.

U.S. stocks rallied as falling oil prices and renewed technology buying lifted sentiment. The Dow Jones Industrial Average gained 2.15% to 52,389.75, the S&P 500 rose 2.35% to 7,549.94, the Nasdaq Composite advanced 2.74% to 25,253.14 and the Russell 2000 climbed 3.15% to 2,840.81.

Canada’s S&P/TSX Composite Index advanced approximately 1.84% to around 36,450, with mining, financial and industrial shares providing support. The European Stoxx 600 gained 1.26% to 656.52, while Italy’s FTSE MIB led the listed major European benchmarks with a 2.69% advance.

Gold bulls are targeting resistance at $4,147.62, with a sustained four hour close above that level and the descending trendline opening a path toward $4,200.09 and potentially $4,250.00. Downside objectives are located at $4,088.51, $4,051.45 and $4,000.00.

Silver bulls must sustain the recovery above $53.107 before targeting $54.617, $55.000 and the broader resistance area between $56.000 and $57.000. Bears are seeking a break below $51.153, which would put the deeper $49.989 downside target into focus.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.