Gold falls as hot inflation figures, higher dollar weigh

Gold  |  2026-11-12 01:17:41   |   By

Gold fell about 3% on Tuesday after data showed US consumer prices rose a larger-than-expected 0.4% in October. Economists polled by ​Reuters had forecast a 0.3% rise.

SEATTLE (Scrap Monster):  Gold prices extended the previous ‌session's fall on Wednesday as hotter-than-anticipated US inflation figures and hawkish comments from Federal Reserve policymakers boosted the dollar and raised the chances of a bigger interest rate hike next month.

Spot gold ​was down 1.1% at $3,986.79 per ounce by 1:51 p.m. ET (1851 GMT), extending Tuesday's ​almost 3% fall after recovering to as high as $4,066.77 earlier in the ⁠session. US gold futures for December delivery settled 0.7% lower at $4,000.50 per ounce.

'CPI ​came out a little hotter than expected, and the market is interpreting that it warrants ​higher rates at the December meeting,' said Bob Haberkorn, senior market strategist at StoneX.

Gold fell about 3% on Tuesday after data showed US consumer prices rose a larger-than-expected 0.4% in October. Economists polled by ​Reuters had forecast a 0.3% rise.

Ahead of the data, Fed Governor Christopher Waller said a ​core inflation reading of 0.3% in October would prompt him to consider a half-point hike at the ‌December ⁠meeting.

While markets priced in an 87% chance of a 25-basis-point rate hike in December, bets on a 50 bp increase rose to 12.9% from zero before the CPI reading, boosting the dollar index to its highest level since April 2025.

A stronger dollar makes bullion ​more expensive for overseas ​buyers, while the non-yielding ⁠metal also becomes less attractive in a high-interest-rate environment.

Haberkorn, however, pointed to strong purchases by top bullion consumer China and other central ​banks.

'That's really kept the floor on gold despite the short-term fundamental ​news, which ⁠is the Fed and interest rates working against it.'

Spot palladium was up 1.8% at $1,043.00 per ounce after hitting its highest level since October 22.

Still, Deutsche Bank analysts said the palladium market ⁠may ​have reached the point where autocatalyst demand erosion intersects ​with recovering secondary supply, turning a decade of scarcity into a persistent surplus.

Spot silver rose 0.7% to $51.88 per ounce.

Courtesy: www.reuters.com