Gold Rises 2.1% as Brent and U.S. Crude Settle More Than 7% Lower

Gold rose 2.1% Monday as oil prices settled more than 7% lower, while Federal Reserve officials’ recent calls for higher rates kept policy in focus for markets.

Spot gold reached $3,954.41 an ounce at 1:49 p.m. ET (18:49 UTC). December U.S. gold futures settled 1.8% higher at $3,969.60 an ounce. Gold’s advance followed its October losses.

Brent crude settled at $104.77 a barrel, down $8.66, or 7.63%. U.S. West Texas Intermediate crude settled at $96.46 a barrel, down $7.66, or 7.36%. The drop in oil eased some inflation concerns.

“We're just getting a bounce after the selloff, along with oil prices coming off to start the week,” said Kyle Rodda, senior financial market analyst at Capital.com.

The Federal Open Market Committee (FOMC) voted 10-2 on Oct. 28 to keep its target federal funds range at 3.75% to 4%. Lisa Cook and Beth Hammack dissented, favoring a 25-basis-point increase.

Dallas Fed President Lorie Logan voted to hold rates at that meeting. In remarks on Oct. 30, she said she still supported at least two additional 25-basis-point increases.