Gold and silver prices are moving higher today, with both metals recovering after last week’s heavy selloff.
Spot gold rose more than 2% on Monday to around $3,957 per ounce, while silver gained roughly 3.7% to about $50.91.
The move comes as markets react to fresh signs of possible de-escalation in the Middle East.
Watcher.Guru reported that gold and silver added around $440 billion in combined market value following reports of progress toward a deal involving the US and Iran.
The broader market reaction supports part of that argument, although the mechanism is slightly more complicated.
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Falling Oil Prices Are Helping Gold
Reuters reported that oil prices dropped more than 6% as markets reacted to diplomatic efforts involving Iran and Qatar aimed at ending the current US-Israeli conflict with Iran.
At first glance, lower geopolitical risk might appear negative for gold.
But falling oil prices can also reduce inflation pressure.
That matters because inflation has been one of the main reasons markets have expected the Federal Reserve to keep interest rates high.
If oil falls, investors can become slightly less worried about another inflation spike.
That is exactly what happened today.
JUST IN: Gold and silver prices rise following reports of US & Iran nearing a deal, adding a combined $440,000,000,000. https://t.co/OwdalcVh4Q
— Watcher.Guru (@WatcherGuru) November 2, 2026
The probability of another Fed rate hike in December dropped to around 77%, from approximately 80% a week earlier.
For gold, even a small reduction in rate expectations can help.
Gold does not pay interest, so higher yields make bonds and cash relatively more attractive. Any move toward lower future rates generally improves the relative appeal of precious metals.
Gold Is Also Recovering From Forced Selling
Another factor is simply how hard gold was hit last week.
Gold fell around 3.6% on Friday and reached its lowest price in roughly a year after the technology selloff triggered margin calls and forced liquidation across markets.
That created unusually oversold conditions.
Some investors may now be buying back into gold after the selloff became stretched.
This is important because last week’s decline was not necessarily driven by investors abandoning the long-term gold story.
Analysts pointed to forced selling, margin calls and the need to raise cash as important parts of the move.
Today’s rebound therefore looks partly like a reversal of that liquidation pressure.
Read also: Gold Price Prediction: Top Analyst Warns About A Brutal Buyer Trap
Silver Is Outperforming Gold Again
Silver is showing even stronger momentum.
The metal gained around 3.7% today, compared with gold’s roughly 2% advance.
That fits silver’s usual behavior.
Silver often moves more aggressively than gold in both directions because its market is smaller and because it combines safe-haven demand with industrial demand.
Silver is now trading back above $50, an area that has become increasingly important after the huge correction from its 2026 highs.
The $47-$50 region also overlaps with several technical support areas that analysts have recently identified, making the current rebound more important than a normal daily bounce.
Can Gold and Silver Keep Rising?
Today’s move is encouraging, but the macro picture is still mixed.
The Federal Reserve continues to describe inflation as elevated, Treasury yields remain high and markets still assign a significant probability to another rate hike.
Those conditions remain a headwind for both metals.
Gold also remains far below its January record near $5,595, while silver has lost more than half of its value from this year’s peak.
Still, the latest move shows that buyers are returning quickly when macro pressure eases.
For gold, reclaiming and holding above $4,000 would be the first important signal that the rebound has more room to run.
For silver, staying above $50 and pushing into the $52-$55 region would strengthen the case that the recent low may have marked at least a short-term bottom.
For now, lower oil prices, slightly softer Fed expectations and bargain hunting after last week’s forced selling appear to be doing most of the work.
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