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Gold Holds Below $3,900 After Nearly 3% Plunge as Fed Rate Bets Rise
Gold remained below $3,900 per ounce on November 12, 2026, after falling nearly 3% to a 13-month low. Rising oil prices, higher Treasury yields and increasingly hawkish Federal Reserve expectations weighed on bullion, despite a modest recovery in evening trading.
Key Points
- Gold near 13-month low: Spot gold recovered 0.2% to $3,886.82/oz in Thursday evening trading after a nearly 3% daytime decline.
- Gold futures: U.S. futures were quoted 0.1% higher at $3,890.67/oz during the evening trading update.
- Monetary policy pressure: Higher Treasury yields and expectations of additional Federal Reserve rate increases weighed on gold.
- Energy markets: Brent crude approached $96 per barrel as U.S.-Iran tensions raised concerns about inflation.
- Other precious metals: Silver, platinum and palladium posted modest increases in the reported evening quotations.
MONTREAL (Scrap Monster): Gold prices remained under pressure on Thursday, November 12, 2026, after a nearly 3% decline pushed bullion to its lowest level in approximately 13 months, as rising energy costs and expectations of further U.S. interest-rate increases weighed on the market.
Spot gold subsequently recovered 0.2% to $3,886.82 per ounce at 7:47 p.m. ET on November 12 (00:47 GMT on November 13), according to Investing.com reporting distributed by Yahoo Finance. U.S. gold futures were quoted 0.1% higher at $3,890.67 per ounce in the same market update.
The modest rebound followed heavy selling during Thursday's regular trading session, when gold fell below $3,900 and briefly reached a 13-month low.
Higher Treasury Yields and Fed Rate Bets Pressure Gold
Gold's decline intensified following stronger-than-expected U.S. consumer inflation data released earlier in the week, prompting investors to reassess the outlook for Federal Reserve monetary policy.
U.S. Treasury yields continued climbing on Thursday, with some maturities increasing by more than 12 basis points. Shorter-dated securities experienced particularly sharp movements because of their sensitivity to changes in interest-rate expectations.
Chicago Federal Reserve President Austan Goolsbee emphasized the importance of containing inflation before economic activity became overheated.
San Francisco Fed President Mary Daly also indicated that further interest-rate increases would probably be necessary, citing inflationary pressures extending beyond sectors directly affected by tariffs and energy costs.
Market pricing reflected expectations of a 25-basis-point increase at the December Federal Reserve meeting, while some investors considered the possibility of a larger 50-basis-point move. Expectations of additional tightening also extended into subsequent meetings.
Higher interest rates increase the opportunity cost of holding gold, which does not provide interest income. Rising yields and a stronger U.S. dollar can therefore reduce bullion's appeal to investors.
ScrapMonster Edge: Evening Recovery Does Not Reverse Gold's Selloff
The slight increase in Thursday evening trading followed a much larger decline during the regular session. Spot gold's 0.2% rebound to $3,886.82 per ounce left the metal below the $3,900 threshold, illustrating the difference between a short-term price recovery and the broader downward movement.
Industry takeaway: Precious-metal refiners, scrap gold buyers and bullion dealers should distinguish timestamped spot quotations from daily futures settlements. Changes in bullion prices provide valuation context, but scrap buying rates also depend on metal purity, recoverable content, assay results and refining charges.
Rising Oil Prices Add to Inflation Concerns
Energy prices contributed to the pressure on precious metals as tensions between Washington and Tehran raised concerns about future oil supply.
Brent crude climbed toward $96 per barrel on Thursday after U.S. President Donald Trump played down the possibility of a diplomatic agreement with Iran and indicated that military action remained an option.
The increase in oil prices added to inflation concerns at a time when stronger economic data and Federal Reserve commentary were already supporting expectations of tighter monetary policy.
Analysts at ANZ linked gold's weakness to higher energy costs, stronger economic indicators, rising bond yields and a U.S. dollar index above 103.
ANZ also identified the possibility of a 50-basis-point Federal Reserve rate increase in December as a growing risk to bullion demand.
Silver, Platinum and Palladium Post Modest Gains
Other precious metals recorded small increases in the same evening market update.
Silver: Spot prices edged higher to $50.0785 per ounce.
Platinum: Prices increased 0.2% to $1,524.00 per ounce.
Spot palladium: Prices advanced 0.3% to $1,001.40 per ounce.
Palladium futures: Contracts gained 0.5% to $997.00.
The U.S. Dollar Index was little changed at 103.21 during the reported trading update.
The evening gains followed a volatile session across precious metals, with interest-rate expectations and energy-market developments continuing to influence market sentiment.
Market data: November 12, 2026, at 7:47 p.m. ET (November 13, 00:47 GMT). Prices represent the quoted observation, not necessarily official daily settlements.
Original reporting: Roushni Nair, Investing.com, distributed by Yahoo Finance.
Courtesy: www.finance.yahoo.com