Lower Oil Prices Support Metals (11.02.2026)

Markets opened the week on a quiet note on Monday following last week’s volatility. Markets continue to price roughly a 75% chance of a Fed rate hike in December. 

Declining oil prices offered some relief to precious metals as renewed diplomatic efforts surrounding Iran eased immediate inflation concerns. Gold recovered above $3,900, while silver rebounded toward $50 after recent declines, although expectations for a December Federal Reserve rate hike remained elevated.

Meanwhile, the euro stayed under pressure near 1.1169 amid French debt market instability, rising European energy costs, and political uncertainty in Spain. Sterling held firm around 1.3390 ahead of an anticipated Bank of England rate increase, while the yen weakened toward 158 per dollar as improving risk sentiment reduced safe-haven demand. Investors now await key US employment data for further policy direction.

Euro Stays Under Pressure Near 1.1169

The euro traded around 1.1169 on Monday, remaining locked in a pronounced downtrend against the dollar. Severe turmoil across French debt markets, climbing peripheral borrowing costs, and Spain's snap election continue driving capital outflows from the Eurozone. Surging natural gas prices threaten German industrial output heading into winter, while diverging monetary policy trajectories between the European Central Bank and the Federal Reserve keep the dollar well supported.

The first resistance is positioned at 1.1200 while the support starts from 1.1120.

Gold Recovers Above $3,900 as Oil Eases

Gold reclaimed the $3,900 per ounce mark on Monday, mounting a recovery from one-year lows as softening crude oil prices moderated inflation worries and rate-hike expectations. Oil faced selling pressure following diplomatic initiatives aimed at preventing new US strikes against Iran. Last week's retreat was driven by energy-fueled inflation risks and liquidity selling tied to the broader tech sector pullback. Market participants now await the upcoming US employment report, with futures pricing an 75% chance of a December Federal Reserve rate increase.

First resistance is seen at $3940, with initial support near $3875.

Yen Weakens Toward 158 Mark

The Japanese yen fell toward 158 per dollar on Monday, ending a three-day winning streak despite warnings from Finance Minister Katayama that Tokyo could intervene alongside the US against disorderly market movements. Investors await upcoming wage data after the Bank of Japan held rates at 1.25% while hinting at a December hike. Diminishing concerns over the tech selloff also reduced safe-haven demand.

First resistance is seen at 158.20, with initial support near 157.30.

Sterling Holds Near 1.3390

The pound traded near 1.3390 on Monday, hovering close to its highest level since mid-September after gaining roughly 1% in October for its first monthly rise since August. Chancellor Healey's budget offered few surprises, reducing fiscal headroom to £15 billion. Investors almost fully price in a Bank of England rate increase on Thursday, with additional hikes anticipated in February and July.

From a technical view, resistance stands near 1.3420, with support around 1.3330.

Silver Rebounds Toward $50 Level

Silver advanced toward $50 per ounce on Monday, recovering from near one-year lows as declining oil prices tempered inflation fears and interest rate expectations. Diplomatic talks regarding Iran weighed on crude markets, though geopolitical uncertainty remains. Following previous pressure from energy-fueled inflation concerns and tech sector liquidations, market focus shifts to Friday's employment report alongside 75% December rate hike odds.

From a technical view, resistance stands near $50.80, while support is located around $48.90.