October proved to be the worst month for gold prices since 2008, with a decline of 6.87%, according to Bloomberg.
However, in the very first trading session of November, the precious metal’s value rose by 1.1% to $3,915 per ounce, recovering some of the ground lost following a 3.7% drop on Friday—a day when prices hit a one-year low of $3,870.
Justin Lin, a strategist at Global X ETFs, noted that some long-term investors view current prices as low and are buying the dip. He added that central banks might also cautiously begin to make purchases, though gold remains at precarious levels. With the price falling below $4,000 per ounce, a large portion of the nearly 150 tonnes of gold accumulated by ETFs since mid-July has moved into loss-making territory.
Ole Sloth Hansen, head of commodity strategy at Saxo Bank, explained that a close below the technical level of $3,886 leaves room for further declines, while a return above $4,000 would be required for a neutral short-term outlook. Meanwhile, silver rose by 1.8% to $49.98 per ounce, while platinum and palladium remained virtually unchanged. Risks to gold persist, driven by the potential for escalation in the Middle East.