Gold rebounded early Friday as investors sought bargains after bullion dropped to a one-year low in the previous session and settled below $4,000 an ounce.
But gold was headed for a weekly drop amid further expectations that the Federal Reserve will raise interest rates next month to curb inflation as oil prices climbed. U.S. President Donald Trump on Thursday halted negotiations with Tehran to end the U.S.-Israel war against Iran.
Gold remained calm in the face of this morning’s inflation report, as a 25 basis point hike in December appears baked in. The producer price index for October increased less than expected, but inflation pressures continue. PPI rose a seasonally adjusted 0.3% for the month, against the Dow Jones consensus for a 0.4% increase, per the Bureau of Labor Statistics. The Federal Reserve is likely still on target for an interest rate increase soon. On an annual basis, headline PPI accelerated 6.5%, up 0.2 percentage point for the highest annual rate since November 2022.
December gold dropped 2.9% Thursday to settle at $3,885.30 an ounce on Comex, and the front-month contract fell 4.7% in the first four days of the week. Bullion dropped 6.9% last month after losing 6.6% in September and rising 9.1% in August. It’s down 11% so far this year after rallying 64% in 2025. The December contract is currently up $15.30 (+0.39%) an ounce to $3900.60 and the DG spot price is $3887.20.
New York Fed President John Williams said Thursday that more rate hikes are likely on high inflation and a strong labor market. Higher rates are considered bearish for gold, making it a less attractive asset for investment.
Consumer prices increased a seasonally adjusted 0.4% last month, more than the 0.3% economists had estimated. Excluding volatile food and energy prices, core CPI rose 0.3%, more than a 0.2% forecast. The Labor Department didn’t release annual estimates because year-earlier data was unavailable following last year’s government shutdown. Last week, the key U.S. monthly jobs report for October exceeded economists’ forecasts, signaling labor market resilience that may help insulate it from the effects of a rate hike.
All the investors tracked by the CME FedWatch Tool are now betting on a Fed rate hike next month, with 89.4% wagering on a 25 basis point increase and the rest on a 50 basis point rise. Last month, the Fed kept interest rates at 3.75% to 4.00%, though the vote included two dissentions. The Fed raised its benchmark rate by 25 basis points in September.
December silver futures declined 3.7% Thursday to settle at $50.07 an ounce on Comex, and the front-month contract decreased 3.6% in the first four days of the week. The most-active contract touched a record above $115 in January. Silver plummeted 19% last month after falling 9.6% in September and climbing 16% in August. It is down 29% so far this year after rising 141% in 2025. The December contract is currently down $0.245 (-0.49%) an ounce to $49.820 and the DG spot price is $49.55.
Spot palladium dropped 4.7% Thursday to $1,003.00 an ounce and is down 2.3% so far this week. Palladium fell 18% last month after losing 11% in September and rallying 5.7% in August. It’s down 38% in 2026 after rising 74% last year. Currently, the DG spot price is up $23.50 an ounce to $1025.00.
Spot platinum fell 1.2% Thursday to $1,523.90 an ounce and has decreased 1.2% in the first four days of the week. Platinum slid 16% last month after falling 4.6% in September and increasing 7.5% in August. Platinum is down 25% so far this year after increasing 122% in 2025. The DG spot price is currently down $13.80 to $1509.60.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.