Gold futures fell about 2% on Tuesday after US consumer prices rose faster than expected in October, lifting Treasury yields and firming bets that the Federal Reserve will raise rates in December.
MoneyTurkey Derivatives Desk | 10 November 2026, 17:35 UK time
Key points
- December gold futures on Comex traded near $4,026 an ounce at about 17:25 GMT, down about $88 or 2.1% from Monday’s $4,114.50 settle, after a low of $4,020.80.
- Spot gold fell further, about 2.9% to near $4,020 an ounce.
- The Consumer Price Index rose 0.4% in October against a 0.3% forecast, and core prices rose 0.3% against 0.2% expected, according to the Bureau of Labor Statistics.
What happened
Gold was already under pressure before the data after Fed Governor Christopher Waller, speaking in London, said a half-point hike should be considered at the December meeting. The hotter inflation print added to the selling. Kitco and Anadolu Agency had spot gold down about 2% near $4,052 in the first hour after the release, and the decline deepened through the US afternoon.
The move erased Monday’s gain of about 1.7%, according to Investing.com, which had taken prices toward $4,130. BullionVault noted it was gold’s fourth swing of close to $100 in five sessions.
What the futures market is pricing
Rate futures moved toward a tighter Fed. CNBC, citing CME’s FedWatch tool, reported that a December rate rise is fully priced and that the probability of a half-point move rose to about 14% from zero before the data. The 10-year Treasury yield was about 5.02% at 17:32 GMT, up about 15 basis points on the day, and the dollar index rose.
Higher yields raise the cost of holding gold, which pays no interest, and a firmer dollar makes it dearer for buyers outside the United States. Futures traded slightly above spot through the day, which is normal for a contract that expires in December.
Why it matters
Gold has been one of the year’s strongest trades, helped by central-bank buying. Tuesday’s drop shows how quickly that support can be outweighed when the market prices more Fed tightening. Waleed Said of GivTrade told Kitco that a December hike now looks like “the starting point rather than the finish.”
What to watch
- Whether gold futures hold above $4,000 an ounce
- Fed speakers this week on the size of a December move
- The 10-year Treasury yield near 5%
- US producer prices and retail sales data
Related on MoneyTurkey
- Fed’s Waller Backs December Hike, Open to Half Point
- Treasuries Slide as Hot CPI Lifts December Hike Odds
- Gold Tops $4,100 as Most Central-Bank Buying Goes Unreported
For information only. Not investment advice.
Sources
- CNBC: Gold falls more than 2% as CPI tops forecasts
- Kitco News: Gold prices down 2% on the day as US CPI rises more than expected
- Anadolu Agency: Gold plunges over 2% as US inflation exceeds expectations
- BullionVault: Gold, silver fall as rate-hike betting jumps
- Prices: CNBC and Yahoo Finance quotes for Comex December gold; CNBC and Gold-API for spot gold, checked 17:25 to 17:36 GMT
