Gold falls 3% to one-year low as Middle East peace hopes fade
Gold prices dropped almost 3% to their lowest level in over a year, according to Reuters. Rising oil prices are fueling expectations of higher Fed interest rates.
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what happened
Spot gold slid about 3% on Thursday to its lowest level since October 2025, extending losses for a third straight session. Reuters reported the price at roughly $3,868 to $3,871 per ounce, depending on the time of trading. Oil rose more than 1% as the chances of ending the conflict with Iran looked weaker. US President Donald Trump said the country did not need a deal with Iran, which raised concerns about inflation.
Spot silver fell about 3.3% to $49.99 an ounce, platinum lost roughly 1.1% and palladium dropped 3%. Markets price in about a 91% chance of a 25-basis-point Fed rate hike in December, and the odds of a larger 50-basis-point move have also risen. Investors are now waiting for US producer price index data due on Friday.
why it matters
Gold pays no yield, so higher interest rates reduce its appeal. A stronger dollar, whose index is near a 19-month high, also makes the metal more expensive for overseas buyers. For markets, the link between oil, inflation and rates is now the key driver.
market impact
Gold and silver: higher rate expectations and a strong dollar pressure metals; oil is getting more expensive.
- Gold pressure down — higher Fed rate expectations and a stronger dollar reduce its appeal
- Silver pressure down — rate expectations and a strong dollar weigh on precious metals
- Oil pressure up — fading hopes for a Middle East peace deal support prices
tags
instruments
sources
- Gold drops 3% to over one-year low as fading Middle East peace hopes fan inflation fears — Reuters, 12 November 2026 at 15:18 UTC
- Gold drops 3% to over one-year low as fading Middle East peace hopes fan inflation fears — Reuters, 12 November 2026 at 17:49 UTC
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