Gold firms on softer oil prices, US midterm results awaited

BENGALURU: Gold prices edged higher in early Asian trade on Wednesday as softer oil prices eased inflation concerns, while investors awaited US midterm election results and key labour market data for clues on the Federal Reserve's monetary policy direction.

Spot gold rose 0.2 per cent to US$3,934.75 an ounce by 12.24am GMT, while US gold futures for December delivery gained 0.1 per cent to US$3,943.20.

Oil prices eased about one per cent on Tuesday to their lowest level in nearly four weeks, as the market weighed talks to end the wars in Ukraine and Iran against concerns that recent attacks in both conflicts could further disrupt supplies.

Russia will hold three-way peace talks with Ukraine and the United States in Abu Dhabi from Nov 10 to 11, the Kremlin confirmed on Tuesday.

However, Iran and the United States remain far from reaching a deal to end their war, a senior Iranian official told Reuters on Tuesday, as mediator Qatar stepped up efforts to bridge differences and avert a renewed escalation after the US midterm elections.

Lower oil prices ease inflation concerns and reinforce expectations that the Federal Reserve may not need to keep interest rates elevated for an extended period, boosting the appeal of non-yielding bullion.

Investors were bracing for a potentially strong showing by Democrats in Tuesday's midterm elections, which could pave the way for greater volatility in asset prices.

Traders currently see a 78 per cent chance of the Federal Reserve raising interest rates in December, according to CME's FedWatch tool.

Elsewhere, India's gold demand is expected to fall to a six-year low in 2026 as elevated prices weigh on jewellery sales and investment demand moderates, the World Gold Council (WGC) said on Tuesday.

Among other precious metals, spot silver fell 0.2 per cent to US$49.67 an ounce, while platinum rose 0.3 per cent to US$1,422.15 and palladium gained 0.5 per cent to US$938.49.