Gold Prices Continue to Fall on November 12 as Spot Gold Drops Below $4,000

At 7:05 a.m. on November 12 (Vietnam time), international spot gold fell 0.34% to $3,972.9 per ounce, while gold futures for December delivery fell 0.37% to $3,985.5 per ounce. At the close on November 11, spot gold was down 1.1% at $3,986.79 per ounce, having briefly recovered to $4,066.77 during the session; December gold futures closed at $4,000.5 per ounce.

Gold had fallen nearly 3% on November 10. US consumer prices rose 0.4% in October, above the 0.3% forecast by economists surveyed by Reuters. Bob Haberkorn, senior market strategist at StoneX, said the market viewed the higher than expected consumer price index reading as a possible reason for the Federal Reserve to raise interest rates at its December meeting.

Federal Reserve Governor Christopher Waller had previously said that a 0.3% rise in the core inflation measure for October would lead him to consider a 0.5 percentage point rate increase at the December meeting. The market assessed the probability of a 0.25 percentage point increase in December at 87%; bets on a 0.5 percentage point increase rose to 12.9% from 0% before the consumer price index data was released. The US dollar index subsequently reached its highest level since April 2025.

A stronger dollar made gold more expensive for buyers using other currencies, while higher interest rates also reduced the appeal of gold, which pays no interest. Bob Haberkorn said gold purchases by China and other central banks continued to support prices.

Among other precious metals, spot palladium rose 1.8% to $1,043 per ounce, while spot silver gained 0.7% to $51.88 per ounce. Deutsche Bank analysts said falling demand for palladium in automotive exhaust catalysts, combined with a recovery in recycled supply, could shift the palladium market from a prolonged shortage to a persistent surplus.

Source: VietVance