Gold prices edged lower on Tuesday, November 3, 2026, following a sharp 2% rise in the previous session. The decline came as investors awaited the results of the U.S. midterm elections, which could influence broader market sentiment. Spot gold fell 0.5% to $3,926.52 per ounce by 0353 GMT, after reaching $3,954.41 per ounce in the prior session, rebounding from a one-year low hit on Friday.
Tim Waterer, chief market analyst at KCM Trade, noted that gold remains in a consolidation phase after last week's significant drop. He explained that gold is being sold as a high-liquidity asset to cover losses elsewhere, rather than being bought as a traditional safe haven, which is hurting its performance in the current environment.
Geopolitical tensions also played a role, as Iran and the U.S. continued talks to end their eight-month war, though no breakthrough was reported. Oil prices had fallen over 7% on Monday, easing inflation concerns and reducing the appeal of gold as a hedge against rising prices. Traders currently see a 74% chance of a Fed rate hike in December, which would increase the opportunity cost of holding non-yielding bullion.
Other precious metals also saw declines, with spot silver slipping 1.8% to $49.71 per ounce, platinum dropping 0.2% to $1,446.80, and palladium dipping 1.4% to $953.64.