Gold entered the new week positively

Gold rises as oil extends decline and Nvidia Corp. It rose, erasing Friday's decline, as the investigation into the Chief Executive Officer (CEO) put pressure on technology stocks.

Gold traded above $4,100 an ounce, returning to an uptrend above the $4,000 support threshold spurred by the US midterm election results.

That rally stalled late last week when strong U.S. employment data reinforced expectations that the Fed would raise interest rates to fight inflation.

Oil on Monday extended its biggest weekly decline since April 2020 as traders weighed diplomatic efforts to end the US-Iran conflict against new attacks in the region.

Gains in Asian stocks were disrupted by the investigation into Nvidia CEO Jensen Huang. While this situation threatened to damage the sensitive risk appetite, it increased the attractiveness of gold as a safe haven. The slight decline in the dollar created a wind of support for commodities priced in this currency.

Bond yields and oil; It has fallen in recent sessions on bets that Democrats will push to end the Iran war and that a divided government will limit additional spending and borrowing.

Despite this, Fed officials are expected to raise interest rates at the next meeting in December, as energy prices remain persistently high. Tighter monetary policy poses a hurdle for non-interest-bearing gold. US employment growth jumped in October and the unemployment rate fell slightly; This indicated that the labor market was strong in a growing economy. Other data also showed U.S. consumer sentiment rose to a three-month high in early November.

Vantage Global Prime market analyst Hebe Chen said, "While political uncertainty provides a cushion under gold prices, changing Fed expectations and Treasury bond yields keep any recovery on a tight rein. CPI data will be the next battleground to test whether safe-haven demand can muster enough firepower to break the dollar-driven ceiling."