Gold rises with hope of dialogue between US and Iran to end war
Precious metals rise on Monday with the possibility of trading, but the market remains attentive to the US election and employment data.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 3 MIN
Gold closed higher on Monday, November 2, driven by optimism surrounding a possible dialogue between the United States and Iran to end a war that has lasted eight months. According to InfoMoney, the December gold contract on Comex rose 1.81% and closed at US$3,969.60 per ounce.
Silver followed the movement, with a more significant increase. According to InfoMoney, the December contract advanced 3.27% and was quoted at US$50.888 per ounce. Times Brasil recorded the same values for both metals on Comex.
On the diplomatic front, Iran stated that talks with Washington continue, even after days of negotiations with Qatari mediators without significant progress, according to Money Times. Iranian Foreign Minister Abbas Araqchi, in a statement to the IRNA agency, classified the consultations by mediators as “very intense” and said that the next response depends on the United States.
President Donald Trump, in an interview with the Pod Force One podcast on November 2, stated that the US is not yet “done with the job” because Iran wants to continue the talks. According to InfoMoney, he said that the country can “take more measures” and, regarding an agreement, he simply responded “We’ll see”. Trump also maintained that Iran cannot have nuclear weapons and claimed that the US “overthrew two” Iranian regimes.
The geopolitical scenario remains charged. On Monday, China and Russia opposed further military action against Iran, according to Money Times, and there are fears that the conflict will intensify again after the US midterm elections, scheduled for Tuesday, November 3. Trump stated, according to InfoMoney, that oil stocks are above pre-war levels, despite the closure of the Strait of Hormuz.
On the markets' radar, the focus of the week is on the US payroll report, scheduled for the end of the week, and on the signals that the Federal Reserve gives about interest rates, according to InfoMoney.
What changes for the investor
Gold and silver reacted to the expectation of de-escalation, but the movement depends on news with no outcome yet. If talks progress, part of the risk premium embedded in metals could lose strength. If the conflict returns, the protection reading tends to gain weight again. Employment data and Fed signaling also factor into this account, because interest and the dollar influence the cost of holding assets that do not pay income. For those who invest, it is worth following the diplomatic agenda and the macroeconomy at the same time, without treating a single trading session as a trend.
Automatically translated from Portuguese.
