Gold rebounds 0.6% after 1-year low, but stays below US$3,900
What's next: Analysts say a move back above US$4,000 is needed to steady the metal after its worst October since 2008.
Gold rose on Monday after tumbling to its lowest level in a year, with dip buyers stepping in as lower oil prices eased some inflation pressure. Spot gold gained 0.6% to US$3,899.39 an ounce in Singapore trading after a 3.7% drop in the previous session, capping its worst October since 2008. Analysts said the rebound was fragile. Saxo Bank's Ole Sloth Hansen said Friday's close below US$3,886 left bullion exposed to more downside, while a recovery above US$4,000 would restore a more neutral short-term view. The metal also faces pressure from a broad sell-off in technology stocks, which has pushed some investors to liquidate gold to cover losses elsewhere.