Gold Recovers Above $3,900 After 13-Month Low as Fed Rate Expectations Weigh on Weekly Performance Fiona Craig Fri, November 13, 2026 at 5:08 AM EST 3 min read GC=F +0.22% SI=F -0.49% PL=F -0.59% PA=F +0.86% DX-Y.NYB +0.08% Gold coin ©PIX1861 Gold prices rose on Friday, recovering above $3,900 per ounce after reaching a 13-month low in the previous session, although the precious metal remained on course for a weekly decline amid higher US Treasury yields, a firmer dollar and expectations of further Federal Reserve interest rate increases.
Spot gold advanced 1% to $3,915.31 per ounce by 03:22 GMT, but remained 3.5% lower for the week. US gold futures for December delivery increased 0.9% to $3,919.60, while a separate futures quotation showed a 0.1% gain to $3,890.67.
Other precious metals also recorded gains. Silver edged higher to $50.0785 per ounce, while platinum increased 0.2% to $1,524.00.
Spot palladium rose 0.3% to $1,001.40 per ounce, and palladium futures gained 0.5% to $997.00.
Gold has faced selling pressure since Tuesday, when US consumer inflation figures exceeded market expectations and comments from Federal Reserve officials prompted investors to reassess the outlook for monetary policy.
US Treasury yields continued to increase on Thursday, with some maturities recording gains exceeding 12 basis points.
Shorter-dated government securities experienced the largest movements, reflecting their sensitivity to changes in expectations for central bank interest rates.
Higher bond yields can affect demand for gold because the metal does not generate interest income, while a stronger dollar can increase its cost for investors using other currencies.
The combination of these factors has contributed to the weekly decline in bullion prices despite Friday's recovery.
Comments from Federal Reserve policymakers reinforced market expectations that additional monetary tightening could be necessary to address inflation.
Chicago Federal Reserve President Austan Goolsbee said on Thursday that the central bank needed to contain inflation before economic activity became overheated.
San Francisco Federal Reserve President Mary Daly also indicated that further interest rate increases would probably be required.
Daly noted that inflationary pressures remained present across sectors beyond those directly affected by tariffs and higher oil prices.
Financial markets were fully pricing in a 25-basis-point increase in December, while some investors were considering the possibility of a larger 50-basis-point adjustment.
Expectations of additional rate increases have also extended beyond December, reflecting uncertainty over the pace at which inflation may moderate.
Energy market developments have added another consideration to the inflation outlook.
Brent crude approached $96 per barrel on Thursday after US President Donald Trump indicated that Washington no longer needed a diplomatic agreement with Iran.
Trump also suggested that military action remained an option, contributing to uncertainty surrounding energy supplies from the Middle East.
Higher energy prices can influence inflation through transportation, manufacturing and other business costs, potentially affecting the Federal Reserve's assessment of monetary policy.
The interaction between energy prices, inflation expectations and bond yields has consequently remained relevant to movements in the gold market.
Analysts at ANZ attributed gold's decline below $3,900 to a combination of higher energy costs, economic data indicating continued activity, rising government bond yields and a US dollar trading above 103 on its index.
According to the bank, these conditions have reduced investment demand for the precious metal.
ANZ analysts also cautioned that "the Fed could even go for 50bp rate hikes in December" if economic conditions continue to support a more restrictive monetary policy stance.
The comments reflected expectations that persistent inflation and economic resilience could influence the size and timing of future Federal Reserve decisions.
With gold recovering from its recent low but remaining lower for the week, investors continued to monitor US inflation indicators, Treasury yields, dollar movements and statements from Federal Reserve officials.
These factors are expected to remain relevant to the direction of precious metals prices as markets assess the possibility of further interest rate increases.
