Gold's Best Week Since August as Oil Crashes 12%

Gold just posted its strongest weekly gain since August, rising about 4.5% to 5%, while crude oil suffered its steepest weekly decline since April 2020, falling more than 12%. The split move, confirmed as the week closed on Friday, November 6, came as investors rotated out of equities rattled by the artificial intelligence selloff and into commodities, and as hopes of policy shifts after the US midterm elections pulled the war premium out of oil.

What happened this week?

Spot gold climbed from near its one-year low of $3,869.85, set on October 30, to about $4,074 an ounce by Friday's close. It touched $4,146.63 on Thursday, its highest level since October 20, before easing back. Reuters put the weekly gain at 5.2%, the metal's best week since August, and market data showed a five-day rise of just over 5% to around $4,071 an ounce on Saturday. Silver joined the move, ending Friday near $52.18 an ounce, up 0.8% on the day.

Oil went the other way, hard. West Texas Intermediate crude retreated from above $104-$105 a barrel to around $90, settling at $90.83 on Friday, while Brent crude eased into the $97-$98 range and settled at $98.32. Both benchmarks posted weekly declines of more than 12%, the steepest weekly fall since April 2020, in the early weeks of the Covid pandemic.

Why is it blowing up?

Two forces collided. First, the US midterm election results raised hopes of de-escalation with Iran and a shift in energy policy, draining the geopolitical premium that had pushed oil above $100 a barrel over the summer. Cheaper oil eases fears of persistent inflation, which took pressure off precious metals for most of the week. Second, the sharp selloff in AI-linked stocks — the Nasdaq 100 fell 6% on Thursday alone — pushed money toward hard assets. Gold exchange-traded funds had already attracted $2.7 billion in October, a fourth straight month of inflows, lifting holdings to a record 4,275 tonnes, according to the World Gold Council, and central banks bought a further 61 tonnes in September.

Why did gold slip on Friday?

The week's final data point pushed the other way. The October US jobs report, released Friday, showed nonfarm payrolls rising 165,000 against expectations of about 65,000, with unemployment edging down to 4.1% from 4.2%. The hot reading lifted the dollar and Treasury yields — the 10-year yield approached 4.88% — and pushed the implied probability of a December Federal Reserve rate hike to around 81%. Gold, which pays no interest, pulled back from its intraday highs, and December gold futures on India's MCX fell 1.20% on Friday to Rs 1,42,364 per 10 grams, even as the weekly gain held.

What does it mean in India?

Indian buyers met the rally with festival demand. The India Bullion and Jewellers Association put 24-carat gold at Rs 1,41,452 per 10 grams on Friday, up from Rs 1,40,054 at the previous week's close, and analysts said lower international prices earlier in the week attracted physical buying ahead of Diwali. MCX silver futures for December rose 0.10% to Rs 1,84,977 per kilogram on Friday.

What's next?

The next test arrives quickly: US October inflation data is due on November 10, and a strong reading would reinforce the case for a December rate hike, supporting the dollar and yields that weighed on gold on Friday. If talks with Iran progress and oil keeps sliding, easing inflation expectations could keep supporting precious metals. This report describes what markets did and why; it is not a recommendation to buy, sell, or hold any asset.

Sources

IANS via The Freedom Press, November 7, 2026
Global Economy Charts, citing Reuters and the World Gold Council, November 7, 2026
BizzBuzz (IANS), November 7, 2026

FAQ

How much did gold rise this week?

Gold rose about 4.5% to 5.2% in the week to November 6, 2026, its strongest weekly gain since August, ending near $4,074 an ounce.

Why did oil fall more than 12%?

US midterm election results raised hopes of policy shifts and de-escalation with Iran, removing the geopolitical premium that had held crude above $100 a barrel; WTI fell to about $90 and Brent to about $98.

Why did gold fall on Friday if it had such a strong week?

A much stronger-than-expected US jobs report (165,000 payrolls versus about 65,000 expected) lifted the dollar and Treasury yields and raised December rate-hike odds to about 81%, which pressures gold because it pays no interest.

What is the next event that could move gold and oil?

US October inflation data on November 10, 2026 is the next major catalyst, alongside any progress in US-Iran talks that would move oil prices further.