NEW YORK / RankWire.AI / – Spot gold dropped 2.9% to $3,871.31 per ounce by 17:30 GMT on Thursday, November 12, as bets on a Federal Reserve rate hike and a firm dollar weighed on the metal. Gold fell for a third straight session and touched its lowest level since October 2025. U.S. gold futures for December delivery slid 3.2% to $3,872 per ounce. The selling hit a range of precious metals.
By the Johannesburg close, spot gold was down 3% at $3,867.96, according to Reuters. The drop left gold at its lowest level in more than a year. Prices came under pressure after a hot U.S. inflation reading on Tuesday raised expectations that the Fed will keep tightening. CNBC reported that traders saw an 85% chance of a quarter-point hike in December. Reuters cited a higher 91% probability.
Iran comments lift oil
Selling intensified after President Donald Trump said on social media that the U.S. did not need a deal with Iran. The comment dashed hopes for peace in the Middle East and pushed oil prices higher. Brent crude rose more than 2% after the remarks, CNBC reported. Rising crude adds to inflation risks, which can lead to higher interest rates. Higher rates raise the opportunity cost of holding gold, which does not pay interest.
Jim Wyckoff of American Gold Exchange said a spike in oil on the Iran news would be negative for gold from an inflation perspective. The dollar index also climbed to a near 19-month high, making bullion more expensive for many buyers. A stronger dollar typically weighs on dollar-priced commodities. The Fed already raised rates earlier this year, a move that sent the dollar to a seven-week high in September.
Silver and palladium fall
Silver fell 3.33% to $49.97 an ounce, dropping below $50, while palladium slid 3% to $997.19 and platinum lost 1.2% to $1,519.05, Reuters reported. Analysts at Commerzbank said weakness in technology stocks may have triggered forced selling and margin calls in metals. David Meger of High Ridge Futures said he would not draw a direct link to tech news, though. Platinum held up better than the other metals.
Gold has retreated sharply from its record high set in January. Rate-hike expectations have been the biggest driver of this year’s precious metals decline, CME Group chief economist Erik Norland said last month. Even so, prices remain significantly higher than at the start of 2025, Norland noted. Norland’s comments were reported by the Financial Times. The metal had briefly gained in early October when weak U.S. jobs data shifted the rate outlook.
The next moves for gold will likely depend on U.S. inflation data, the dollar and Fed signals ahead of the December meeting. Investors will also watch developments in the Middle East and oil markets, which have become a key driver of inflation expectations. A rise in Treasury yields would add to the pressure on gold, while any easing in oil prices could offer some relief. The Fed’s next policy decision is due in December.