Gold is posting gains on Monday morning, 2 November, supported by a weaker dollar, lower oil prices, and position-building by investors taking advantage of recent price declines to accumulate the precious metal.

Gold is advancing 0.67% to $3,900.63 per ounce, after retreating 3.7% in the previous session. October marked the metal’s worst monthly performance since 2008. Silver is also higher, up 2.33% to $50.244 per ounce.

In this context, gold is finding support from long-term investors who view current price levels as a buying opportunity, according to Justin Lin, an analyst at Global X ETFs, cited by Bloomberg. “We are likely to see some dip-buying on Monday during the Asian session as investors and possibly central banks cautiously add to their positions,” he said. “But gold is certainly in a precarious spot,” he added.

Despite the recovery, the precious metal remains vulnerable to any escalation of hostilities in the Middle East. Axios reported that the United States may favour a diplomatic resolution to the conflict. However, Donald Trump has threatened to resume strikes against Iran following the US midterm elections scheduled for Tuesday, while Tehran warned it could respond more broadly. Several Gulf states have also expressed concern that a renewed offensive could trigger an even more destructive conflict across the region.