Gold prices rebound after sharp losses

Spot gold rose approximately 0.7% in early trading to $3,900.90 per ounce, while U.S. gold futures gained 0.3% to $3,909.70. The precious metal had fallen 3.5% in the previous trading session, reaching its lowest level in a year. Liquidity needs and forced position liquidations triggered by a sell-off in technology stocks had weighed heavily on gold prices.

A decline of more than 3% in oil prices and expectations of a diplomatic resolution in the Middle East helped ease inflation concerns, supporting gold's recovery. However, expectations that the Federal Reserve could raise interest rates again in December continued to pressure the non-yielding metal. Investors are closely monitoring U.S. Treasury yields, movements in the dollar, and economic data scheduled for release throughout the week. Meanwhile, silver prices climbed 1.8% to $49.97 per ounce.