NEW YORK / RankWire.AI / – Gold prices extended losses for a third consecutive session on Thursday, November 12, falling around 3% to their lowest level in more than a year. Spot gold dropped 2.9% to $3,871.31 per ounce by 17:30 GMT, after touching its lowest level since October 2025 earlier in the session. U.S. gold futures for December delivery fell 3.2% to $3,872 per ounce.
The selloff came as rising oil prices and fading hopes for a deal between the United States and Iran revived inflation worries. President Donald Trump said on social media that the U.S. did not need a deal with Iran. Brent crude rose more than 2% after the comments, according to CNBC. Higher energy costs could keep inflation elevated and push the Federal Reserve to tighten policy further. Oil and inflation expectations have been closely linked this year.
Rate hike bets weigh on bullion
Traders increased bets on a December rate hike after a hot U.S. inflation reading on Tuesday. Markets priced in roughly an 85% to 91% chance of a quarter-point increase, according to CNBC and Reuters, and the odds of a larger half-point move also rose. Gold, which pays no interest, tends to lose appeal when rates rise. In early October, gold had climbed as a US jobs slowdown reshaped rate expectations.
A stronger dollar added to the pressure. The U.S. dollar index rallied to a near 19-month high, making gold more expensive for buyers holding other currencies. The dollar had retreated from an 18-month high in October before resuming its climb. Jim Wyckoff, market analyst at American Gold Exchange, said a spike in crude oil prices on the Iran news would be negative for gold from an inflation perspective.
Silver slips below $50
Other precious metals also fell. Spot silver dropped about 3.3% to $49.97 an ounce, slipping below the $50 level, according to Reuters. Platinum fell 1.2% to $1,519.05, while palladium lost 3% to $997.19. The declines extended a broad retreat in precious metals as investors moved away from assets that do not pay interest. Industry data from the World Gold Council will show how demand responds.
Some analysts also linked the selling to weakness in technology stocks, which may have forced investors to sell gold to cover losses or meet margin calls. Commerzbank analysts pointed to that possibility in a note. David Meger, director of metals trading at High Ridge Futures, said tech-sector news may have affected gold in an ancillary way but cautioned against drawing a direct link. Such selling often hits gold when investors need cash quickly.
Gold’s slide marks a sharp reversal after the metal hit a record in January. Rate-hike expectations have been the largest factor behind this year’s decline in precious metals, Erik Norland, chief economist at CME Group, said last month. Investors will watch upcoming U.S. economic data and Fed comments for clues on the December decision. A further rise in yields could add pressure on gold. Traders will also track oil prices and the dollar.