Gold prices extended their decline on Thursday, November 12, 2026, falling below $4,000 per ounce as higher-than-expected US inflation and Federal Reserve commentary increased expectations of another interest rate increase in December.
At 00:16 ET (05:16 GMT), spot gold declined 0.4% to $3,973.13 per ounce, while US gold futures fell 0.6% to $3,978.57.
Silver lost 0.6% to $51.3605 per ounce, and platinum decreased 0.2% to $1,535.84. Palladium moved higher, with spot prices gaining 0.1% to $1,034.06 and futures rising 0.1% to $1,031.25.
The US Dollar Index increased 0.1% to 102.98, adding to the pressure on precious metals.
Federal Reserve Policy Expectations Shift
Investors were pricing in a 25-basis-point interest rate increase at the Federal Reserve’s December meeting, while some market participants considered the possibility of a larger 50-basis-point adjustment.
Chicago Federal Reserve President Austan Goolsbee described October’s inflation report as “borderline disturbing”, while policymaker Anna Paulson indicated that persistent price pressures could not be explained solely by temporary factors.
The change in interest rate expectations was also reflected in US government bond markets. Two-year Treasury yields increased by 18 basis points on Tuesday, responding to the prospect of tighter monetary policy.
Higher bond yields can reduce demand for gold because the metal does not provide interest income. Dollar appreciation can also make bullion more expensive for investors holding other currencies.
Inflation and Bond Yields Influence Precious Metals
ANZ analysts said the latest inflation figures and continued economic activity had increased expectations of a more restrictive Federal Reserve policy stance.
They noted that a 50-basis-point increase in December remained a possibility, with higher Treasury yields and dollar strength contributing to pressure on gold prices.
Investors continued to monitor US economic indicators and Federal Reserve communications for further indications of the likely direction of interest rates.