Gold falls below $4,000 ahead of US PPI data

November 12, 2026 (MLN): Gold prices edged lower on Thursday, sliding to their weakest level in more than a week as a stronger dollar and rising bets on a Federal Reserve rate hike weighed on the metal.

Currently, spot gold is down 1.28% to $3,977.66 an ounce as of [10:15 am] PST, according to data reported by Mettis Global.

The pressure came after US data released on Tuesday showed inflation picked up in October by more than markets had projected.

Remarks from Fed officials pointing to a readiness to tighten policy more forcefully added to the mood, sharply lifting the odds of a half-percentage-point rate increase next month, according to CNBC.

The dollar rose to a 19-month high against major currencies, making bullion priced in the greenback costlier for buyers holding other currencies.

Although gold is generally viewed as a hedge against inflation, higher interest rates raise the opportunity cost of holding an asset that pays no yield, which dents its appeal for investors.

Market participants are now looking ahead to the US Producer Price Index (PPI) report due on Friday.

Among other precious metals, spot palladium gained 1% to $1,037.25 per ounce.

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