Gold Edges Higher As Inflation Concerns Ease

(RTTNews) - Gold prices traded higher on Monday as inflation concerns eased ahead of U.S. midterm elections.

Spot gold rose 0.6 percent to $3,899.59 an ounce after plummeting 3.7 percent in the previous session to hit a one-year low. U.S. gold futures were up 0.2 percent at $3,907.15.

The precious metal slumped 6.8 percent last month, marking its worst October performance since 2008.

Falling oil prices helped ease inflation concerns. Brent crude futures slumped more than 4 percent as ongoing discussions involving Iranian officials and Qatari mediators have raised hopes of possible breakthrough that could ease supply concerns and improve the outlook for global energy markets.

Persian Gulf countries fear that another U.S. attack on a better-prepared Iran could trigger a more destructive conflict across the region.

Traders were also reacting to reports suggesting that U.S. President Donald Trump wants to give diplomacy with Iran more time before resuming strikes.

Speaking at a campaign rally in Dubuque, lowa, Trump has renewed his threat to strike Iran but claimed that U.S. military action had destroyed Iran's nuclear capabilities and the conflict would end soon.

In a report published on November 1, Radio Free Europe quoted Trump as saying that the United States still needed to deal with one or two Iranian targets.

However, Secretary of State Marco Rubio stated that Trump prefers a diplomatic resolution to the U.S.-Israeli conflict with Iran, raising hopes of a settlement and easing concerns about further energy supply disruptions.

In economic news, Asia's factory growth continued to expand in October, but growth slowed in major chip exporters, private surveys showed earlier today.

Elsewhere, Euro zone manufacturing activity growth held up well in October, albeit easing as cost pressures build.

The U.S. dollar was steady ahead of this week's U.S. midterm elections that will determine control of Congress.

Readings on U.S. manufacturing and employment coupled with central bank rate decisions in the U.K., Australia, Norway and Sweden will be in the spotlight as the week progresses.

The euro languished near a 17-month low after Fitch lowered France's sovereign rating outlook from "stable" to "negative."