Gold climbs to about $3,950 in early Asian trade, buoyed by lower oil prices and easing inflation worries, while traders watch US midterms for further direction.

Gold (XAU/USD) nudged up to roughly $3,950 during the early Asian session on Tuesday, marking a modest rebound after oil prices slipped and inflation concerns eased. The move came as traders prepared for the upcoming US midterm elections, which could reshape risk sentiment and demand for safe‑haven assets.

Oil, inflation and Fed expectations

• Falling oil prices have softened inflation worries, according to Zaner Metals senior metals strategist Peter Grant.
• The market still expects a Fed rate hike in December, but odds have slipped to about 73% from 80% a week earlier, per the CME FedWatch Tool.

Geopolitical backdrop

• Iran and the United States continue talks to end their eight‑month conflict, with Tehran saying negotiations are ongoing.
• HSBC notes that a stable US dollar and continued central‑bank buying keep gold well‑supported despite lingering geopolitical risks.

What traders are watching

• US midterm election outcomes later this week, especially the House race where Democrats lead and the uncertain Senate contest.
• Key technical levels: gold remains below the 20‑period Bollinger Band SMA and the 100‑day simple moving average, while the RSI sits at 36.9, just above oversold territory.

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This article is compiled from international market news for information only. It is not investment advice.