Gold prices reversed course on Tuesday, November 10, giving up their recent gains after stronger-than-expected US inflation data pushed Treasury yields and the dollar higher.
Spot gold last traded at $4,054.90 an ounce, down 2% on the day, shortly after the CPI data was released.
COMEX gold futures for December delivery were at $4,060.80 at 13:58 GMT, down 1.3% from Monday’s settlement of $4,114.50.
The contract dropped from $4,080.40 to $4,052.20 in the first five minutes after the data and touched a low of $4,046.40.
The drop erases Monday’s gains.
Gold settled roughly 2% higher on Monday, extending its recovery from a yearly low of $3,870, and hit a three-week high of $4,149 in Asian trade on Tuesday.
Why is gold price falling?
The US consumer price index rose a seasonally adjusted 0.4% in October, against a Dow Jones consensus of 0.3%, the Bureau of Labor Statistics said.
Core CPI, which excludes food and energy, rose 0.3% against forecasts of 0.2%.
The BLS did not publish an annual rate because last year’s government shutdown stopped it from collecting October 2025 data.
Treasury yields jumped on Tuesday.
The 10-year yield rose more than 7 basis points to 4.938% and the 2-year more than 15 basis points to 4.698%.
The US dollar index was up about 0.4% near 102.0. Higher yields and a firmer dollar raise the opportunity cost of holding non-yielding bullion.
Gold was already under pressure before the release.
It was down more than 1% heading into US trading hours, with selling intensifying after hawkish remarks from Fed Governor Christopher Waller.
In a speech in London, Waller said he was leaning toward a 25 basis point hike in December. But if core CPI came in “around 0.3 percent or even higher,” he said, “a 50 basis point hike in the policy rate should be considered.”
What happens next?
Traders fully priced in a quarter-point increase at the Fed’s December 8-9 meeting and put the odds of a half-point move at 14.7%, according to CME Group’s FedWatch.
The Fed held its target range at 3.75%-4.00% in October in a 10-2 vote.
Producer price data is due on Friday. US bond markets are closed on Wednesday for Veterans Day, which could thin liquidity.
Silver futures fell about 1.5% to near $51.80, while Bitcoin was down about 2% near $73,800.
Should you buy gold now?
The hotter print leaves gold sensitive to Treasury yields, the dollar, and Friday’s PPI data ahead of the Fed’s December meeting.
Investors weighing exposure can read our guide to compare the best gold trading platforms.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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