Gold Falls 3% to Lowest Since October 2025 as U.S. Yields Rise

Key Facts

Spot gold fell 3% to $3,867.96 an ounce by 10:01 a.m. Eastern time on November 12, after touching its lowest level since October 2025 during the session, Reuters reported via MarketScreener. The agency linked the decline to rising oil prices, inflation concerns and expectations that interest rates would remain high. In EL7 data, the recorded gold price closed at 3,877.16 on November 12, compared with the previous day's close of 3,987.7. EUR/USD also closed at 1.10551, versus 1.10898 on November 11. These closes show daily declines in both assets, as broader markets came under pressure from rising Treasury yields and a reassessment of the U.S. policy outlook.

The 10-year U.S. Treasury yield rose to 5.12% on November 12, from 4.98% at the close on Tuesday, November 10, The Associated Press reported. The bond market was closed Wednesday for Veterans Day, making the yield comparison run from Tuesday's close to Thursday's trading. This followed sharp moves in the November 10 session, when the two-year yield rose 18.44 basis points to 4.731%. In the same session, the 10-year yield climbed 12.55 basis points to 4.988%, Reuters reported via MarketScreener. The surge in yields was linked at the time to hotter-than-expected inflation data, which bolstered bets on rate hikes; those expectations affect the cost of holding non-yielding assets such as gold and the dollar's appeal against the euro.

The U.S. consumer price data for October came amid these moves. The Consumer Price Index for All Urban Consumers rose 0.4% month over month, after a 0.6% increase in September, according to the U.S. Bureau of Labor Statistics. The index's unadjusted level was 337.511 points, based on 1982-84=100. The index excluding food and energy rose 0.3% in October, the same monthly increase recorded in September and August. The bureau published October's figures on November 10, so the inflation readings refer to the month before publication. The index level alone does not establish that it exceeded market expectations; the monthly figures show headline inflation slowed from September, while the increase in the core index remained steady across the three months cited.

The Bureau of Labor Statistics report identified the contributions of price components to October's reading: the shelter index rose 0.3%, accounting for more than 30% of the monthly increase in the overall index. The food index also rose 0.5%, while the energy index increased 0.7% during the month. Federal Reserve Vice Chair for Supervision Michelle Bowman said, "The latest data suggest these pressures may broaden." Reuters had reported that Fed officials warned during the week that inflation remained high, and that some were prepared to accept a 50-basis-point rate increase if price pressures did not ease. These remarks help explain bond and gold markets' sensitivity to price data, as the possibility of tighter monetary policy remained in trading.

Markets are looking to the release of the U.S. October Producer Price Index on November 13 at 8:30 a.m. Eastern time, according to the Bureau of Labor Statistics schedule. On the same day, Bowman was scheduled to take part in a discussion on supervision and regulation at 10:50 a.m. local time listed on the Federal Reserve's calendar. The data release and remarks come after inflation readings and rate expectations pushed Treasury yields higher in previous sessions. The next Federal Open Market Committee meeting in 2026 is scheduled for December 8 and 9, according to the Fed's calendar. The December meeting is the committee's next listed event after the November price data and Bowman's appearance.