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Article: After the Bell: Gold Slides 3% as Fed Hike Bets Lift the Dollar
After the Bell: Gold Slides 3% as Fed Hike Bets Lift the Dollar
THURSDAY, NOVEMBER 12, 2026 · ATLANTA, GA
ALEX LEXINGTON
THE PULSE · AFTER THE BELL
The Pulse · Listen now · 4:45
Thursday November 12: Gold Slides 3% as Fed Hike Bets Lift the Dollar
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MARKET SNAPSHOT
| Gold spot | About $3,874/oz near the close, down about $113 (-2.8%); day's range $3,852 to $4,001 |
| Silver spot | About $49.85/oz, down $1.70 (-3.3%); day's range $49.59 to $52.07 |
| US dollar | 19-month high against major currencies |
| 10-Year Treasury | Back above 5%, near 5.13% (bond market reopened after Veterans Day) |
| WTI / Brent crude | $88.74 / $95.82 a barrel at settlement, up 2.6% / 3.3% |
| S&P 500 | About 7,592, down roughly 0.35% |
| December Fed hike odds | About 90% for a quarter point (CME FedWatch) |
| Jobless claims | 200,000 for the week ending Nov. 7, vs. about 195,000 expected |
| Existing-home sales (Oct.) | 3.75 million annual pace, down 5.5% from September |
THE METALS
Gold had a rough Thursday. It fell about 3% to around $3,870 an ounce late in the afternoon, after starting the morning near $4,000, according to Kitco. Silver dropped more than 3%, slipping just under $50 an ounce. The reason was interest rates: fresh signals that the Federal Reserve is ready to raise rates next month sent the dollar to a 19-month high, and a stronger dollar makes gold cost more for buyers around the world. Gold also pays no interest, so when yields on savings and bonds climb, some investors step aside.
Official buying hasn't stopped underneath the daily moves. China added about 26 tonnes of gold to its reserves in October, according to the World Gold Council, extending a two-year run of purchases.
THE STORY
Several Federal Reserve officials spoke on Thursday, and the message was consistent: inflation is too high, and more rate increases are likely. San Francisco Fed President Mary Daly said, “we definitely have an inflation problem right now,” and that “further tightening will be needed.” Cleveland Fed President Beth Hammack said she favors smaller, more frequent increases. That follows Tuesday's Consumer Price Index from the Bureau of Labor Statistics, which showed prices up 0.4% in October, above the 0.3% economists expected, with core prices up 0.3%.
Traders now put roughly a 9-in-10 chance on a quarter-point hike at the Fed's December 8–9 meeting, according to CME FedWatch. That is market pricing, a bet, not a promise. The 10-year Treasury yield, which helps steer mortgage rates, moved back above 5% as the bond market reopened after Veterans Day. October existing-home sales fell 5.5% to a 3.75 million annual pace, and the National Association of Realtors said mortgage rates are near their highest levels since 2000.
Oil moved the other way. U.S. crude settled at $88.74 a barrel, up 2.6%, and Brent at $95.82, up 3.3%, after hopes faded for a diplomatic deal with Iran. Stocks slipped, with the S&P 500 down roughly a third of a percent as a leadership change at Nvidia weighed on technology shares. Weekly jobless claims rose to 200,000, slightly above forecasts, though layoffs remain low.
FROM OUR DESK
At our desk today, the customers who came in were sellers, not buyers, mostly bringing in old gold jewelry, along with some silver coins and old silver. Earlier in the week, the buyers we did see were mostly picking up silver coins. This is an observation, not a signal.
WHAT AN OUNCE BUYS
The USDA's moderate-cost food plan puts groceries for a family of four at about $1,389 a month (September 2026 report). At around $3,870, one ounce of gold would cover nearly 2.8 months of that grocery bill, even after today's drop.
WHAT IT MEANS FOR YOU
Borrowing: If the Fed raises rates in December, mortgages, car loans and credit card balances get more expensive, while savings accounts may pay a little more. With the 10-year yield back above 5%, home loans remain costly.
At the pump: Oil jumped about 3% on Thursday. Changes in crude can show up in what you pay for gas within a couple of weeks.
Your metals: A stronger dollar and higher rate expectations weighed on both gold and silver today. Prices move every day; what matters is how metals fit your own plans and time horizon.
LISTEN TO THE PULSE
Hear this edition with the player at the top of this page, see all episodes, or follow The Pulse on Spotify.
WHAT TO WATCH TOMORROW
October's Producer Price Index arrives Friday at 8:30 a.m. ET, a measure of what businesses pay for goods and services and an early hint of where consumer prices may be headed. With the Fed focused on inflation, investors will be watching it closely, along with more Fed speakers.
EPISODE TRANSCRIPT
Read the full transcript
Here's your Thursday evening update on what moved the markets today, and what it means for you. Gold had a rough day. It fell about 3%, to around $3,870 an ounce, after starting the morning near $4,000. Silver dropped more than 3%, slipping just under $50. The reason is interest rates. Fresh signals that the Federal Reserve is ready to raise rates next month sent the dollar to a 19-month high, and a stronger dollar makes gold cost more for buyers around the world. Gold also pays no interest, so when savings yields climb, some investors step aside.
The big story is the Fed. Several Fed officials spoke today, and the message was the same: inflation is too high, and more rate increases are likely. San Francisco Fed President Mary Daly said, “we definitely have an inflation problem right now.” Cleveland Fed President Beth Hammack said she favors smaller, more frequent increases. This follows Tuesday's report showing consumer prices rose 0.4% in October, more than the 0.3% economists expected. Traders now put roughly a 9-in-10 chance on a quarter-point hike at the Fed's December meeting. That's a bet, not a promise. What it means for you: rising rates help savers earning interest, but they make borrowing more expensive.
You could see that in the bond market. The 10-year Treasury yield, which helps steer mortgage rates, climbed back above 5%. And today's housing report showed the strain. Sales of existing homes fell 5.5% in October, to a yearly pace of 3.75 million, below what was expected. The National Association of Realtors says mortgage rates are near their highest levels since 2000. If you're shopping for a home or thinking about refinancing, higher rates mean a bigger monthly payment for the same loan.
Oil went the other way. Prices rose about 3%, with U.S. crude settling near $89 a barrel and Brent near $96, after hopes faded for a deal with Iran. Higher oil prices can show up at the gas pump within a couple of weeks. Stocks slipped, with the S&P 500 down about a third of a percent, weighed down by a leadership shake-up at chipmaker Nvidia. Weekly jobless claims rose to 200,000, a bit above forecasts, but layoffs remain low.
From our desk. At our desk today, the customers who came in were sellers, not buyers, mostly bringing in old gold jewelry, along with some silver coins and old silver. Earlier in the week, the buyers we did see were mostly picking up silver coins.
What an ounce buys. Even after today's drop, one ounce of gold, at about $3,870, would cover nearly 2.8 months of groceries for a family of four, based on the U.S. Department of Agriculture's moderate-cost food plan of about $1,389 a month.
What to watch tomorrow. Friday morning brings the producer price index, a measure of what businesses pay for goods and services, and an early hint of where consumer prices may be headed. With the Fed focused on inflation, investors will be watching it closely. We'll also be listening for more Fed speakers.
Enjoying The Pulse? Like, subscribe and join our newsletter, and tell us what news you want next. And grab our free Buyer's and Seller's Guide at alexlexington.com, yours to use with us or any dealer. That's your market for today. When you're ready to buy, sell or secure your precious metals, the Alex Lexington family is here for you. See you soon.
DISCLOSURE
This content is for education only and is not investment advice. Alex Lexington does not provide personalized financial advice; talk with a precious metals broker or advisor you trust about your own situation. Prices are approximate and drawn from public sources at the time of writing.
Sources: Kitco (gold and silver spot prices); USAGOLD and Reuters via Business Recorder (gold moves, dollar, Fed odds); CME FedWatch; U.S. Bureau of Labor Statistics, Consumer Price Index for October 2026; Rigzone (oil settlements); TheStreet and StockTitan (jobless claims, existing-home sales, Fed remarks); Portfolio Terminal and 24/7 Wall St. (index closes); Trading Economics (10-year yield); Reuters via WBOW (Daly and Hammack remarks); Kitco News (World Gold Council, China reserves); USDA Food and Nutrition Service, Cost of Food report, September 2026.