Gold falls 3% to lowest global level in over a year

Gold prices continued their global losses for a third consecutive session on Thursday, November 12, 2026, pressured by a stronger US dollar and rising expectations that the US Federal Reserve will tighten monetary policy and raise interest rates.

Spot gold dropped 3% to $1,866.08 per ounce, after earlier hitting its lowest level since November 4. US gold futures for December delivery fell 3.2% to $1,872.60 per ounce.

Ole Hansen, an analyst at Saxo Bank, said selling pressure on gold increased due to persistent concerns over US inflation and comments from Federal Reserve officials supporting tighter monetary policy.

He added that consumer price data exceeding expectations has strengthened market bets on an interest rate hike at the upcoming December meeting, with the increase potentially reaching 50 basis points, despite recent declines in energy prices.

According to CME Group's FedWatch tool, the probability of a 25 basis point rate hike in December stands at 89%, compared to an 11% chance of a 50 basis point increase, up from zero before the inflation data was released.

In other precious metals markets, silver fell 1.3% to $50.99 per ounce, while palladium slipped 0.2% to $1,025.81 after hitting its highest level since October 22 in the previous session.