European Investor
12 Nov 2026, 09:27
Gold Falls 1.6% as Hotter U.S. Inflation Data Pressures Rate-Cut Expectations
Gold prices fell sharply, with December COMEX futures dropping 1.62% to $3,935.50 per ounce, extending a five-day decline of roughly 4.3%.
The latest selling was driven in part by hotter-than-expected U.S. inflation data. October consumer prices rose 0.4% month over month, above the 0.3% forecast, while core CPI increased 0.3%, also exceeding expectations for a 0.2% rise.
The stronger inflation readings reduced expectations for near-term Federal Reserve rate cuts, increasing pressure on non-yielding assets such as gold. Higher-for-longer interest-rate expectations can also support U.S. Treasury yields and the dollar, both of which typically create headwinds for precious metals.
Gold consequently fell below the psychologically important $4,000 level after trading above $4,100 earlier in the five-day period. December futures had reached roughly $4,150 before momentum reversed.
A brief recovery toward the $4,050-$4,070 region on November 11 failed to hold, and renewed selling pushed the contract toward $3,935 by early November 12.
With gold now down more than 4% over five days, the price action points to a pronounced short-term correction, with stronger U.S. inflation and shifting interest-rate expectations adding to downward pressure.
Gold prices fell sharply, with December COMEX futures dropping 1.62% to $3,935.50 per ounce, extending a five-day decline of roughly 4.3%.
The latest selling was driven in part by hotter-than-expected U.S. inflation data. October consumer prices rose 0.4% month over month, above the 0.3% forecast, while core CPI increased 0.3%, also exceeding expectations for a 0.2% rise.
The stronger inflation readings reduced expectations for near-term Federal Reserve rate cuts, increasing pressure on non-yielding assets such as gold. Higher-for-longer interest-rate expectations can also support U.S. Treasury yields and the dollar, both of which typically create headwinds for precious metals.
Gold consequently fell below the psychologically important $4,000 level after trading above $4,100 earlier in the five-day period. December futures had reached roughly $4,150 before momentum reversed.
A brief recovery toward the $4,050-$4,070 region on November 11 failed to hold, and renewed selling pushed the contract toward $3,935 by early November 12.
With gold now down more than 4% over five days, the price action points to a pronounced short-term correction, with stronger U.S. inflation and shifting interest-rate expectations adding to downward pressure.
