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Gold sheds gains as hot inflation figures, higher dollar weigh

Reuters • November 11, 2026 • general

Key Points:

Gold prices declined by 0.41% to $4,014.26 per ounce after earlier gains, influenced by hotter-than-expected US inflation data and hawkish Federal Reserve comments suggesting a larger interest rate hike in December.
US consumer price index (CPI) rose 0.4% in October, surpassing the 0.3% forecast, leading to increased market expectations for a 50 basis point rate hike, which boosted the US dollar to a four-week high.
A stronger dollar makes gold more expensive for overseas buyers and reduces its appeal compared to interest-bearing assets, contributing to the recent gold price drop despite strong central bank purchases in the third quarter.
Among other metals, palladium surged 5.2% to $1,078.56 per ounce, reaching its highest level since late October, while silver increased by 1.41% to $52.23 per ounce.
Deutsche Bank noted that palladium markets might be shifting from a decade-long scarcity to a persistent surplus due to balancing autocatalyst demand decline with recovering secondary supply.

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