Markets price in a December increase
October's month-over-month increases in both headline and core US consumer prices slightly exceeded analysts' forecasts. The core measure excludes food and energy to give a clearer view of the longer-term price trend.
Following the report, financial markets fully priced in a December Fed rate hike of at least 0.25 percentage points. Before the release, Fed Governor Christopher Waller had left open the possibility of a 0.50-percentage-point increase if October inflation exceeded expectations.
That prospect weighed on gold, which pays no interest and faces greater competition from investments such as bonds when rates rise, according to dpa-AFX. Gold prices are quoted per troy ounce, equivalent to about 31.1 grams.
Oil, tariffs and data centers fuel inflation
dpa-AFX identified the Iran war and the resulting rise in oil prices, US tariffs and the data-center boom as contributors to inflation this year.
The oil shock followed the 2026 Iran war and the closure of the Strait of Hormuz. According to Wikipedia's account of the war's economic impact, the International Energy Agency described the resulting disruption as the "largest supply disruption in the history of the global oil market".
Brent crude climbed from about $72 a barrel before the war to a peak of $118.35 on March 31, 2026, before retreating to around $71.57 by July 1, according to the same account.
Goldman lowers its gold forecasts
The Fed's hawkish shift and an expected December rate increase also prompted Goldman Sachs to lower its gold price forecasts, according to Yahoo Finance / Investing.com. Strategists led by Lina Thomas now project $4,150 an ounce at the end of 2026, down from $4,650, and $4,800 at the end of 2027, down from $5,400.
Goldman expects central banks to purchase about 60 tonnes of gold a month through 2026 and 2027. That compares with a monthly average of 17 tonnes before 2022.
Technical levels to watch
FXStreet's technical analysis on November 10, 2026, described gold as consolidating in a range of roughly $4,040 to $4,150 an ounce. It identified $4,150 as immediate resistance and a former demand zone between $3,960 and $3,880 as an important support area.
