Gold fell to its lowest level in more than a year on Thursday. Gold futures for December delivery dropped 2.9% to settle at $3,885.30 an ounce on the Comex, the lowest settlement since early October 2025.
The slide came as the dollar and Treasury yields climbed on bets that the Federal Reserve will raise interest rates next month. The dollar index held at its highest level since April 2025. Traders put the chance of a December rate increase at about 91%, according to CME Group’s FedWatch tool, as reported by CNBC, after October consumer price data released Tuesday came in stronger than expected. Reuters also tied the drop to fading hopes for peace in the Middle East, which have fanned inflation fears.
Higher interest rates tend to weigh on gold because the metal pays no interest. A stronger dollar also makes gold more expensive for buyers who use other currencies.
Thursday’s settlement left gold about 27% below the front-month contract’s 2026 closing high of $5,318.40 an ounce on Jan. 29, and down about 10.5% for the year.
Gold was little changed in early Asian trading, near $3,890 an ounce on Thursday evening, Eastern time.
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