Solid Gold Futures – Gold prices (XAU/USD) attempted a recovery during Friday’s Asian trading session (November 13), holding around US$3,900 per troy ounce. This movement halts a three-day losing streak, which had previously pushed prices to their lowest level since late September.
The recovery in gold is supported by the US dollar, which has begun to lose momentum following a strong three-day rally that saw it reach its highest level since April 2025. This temporary weakening of the dollar has provided room for a limited rebound in gold.
However, expectations of interest rate hikes by the Federal Reserve remain a primary obstacle. The market has fully priced in a 25-basis-point hike for December, while the probability of a larger 50-basis-point increase stands at approximately 13%.
Additional pressure stems from high US government bond yields. The 10-year Treasury yield remains above 5%, driven by hotter-than-expected US consumer inflation data and hawkish remarks from several Federal Reserve officials.
Geopolitically, tensions between the US and Iran—along with attacks on energy infrastructure and commercial vessels in the Strait of Hormuz—continue to sustain demand for the US dollar as a safe-haven asset. Consequently, the potential for gold to climb higher remains relatively constrained.
Market focus is now directed toward the release of the US Producer Price Index (PPI) and further statements from Federal Reserve officials. As long as the dollar, bond yields, and interest rate hike expectations remain elevated, any recovery in gold is likely to be limited, even if prices manage to hold around the US$3,900 per troy ounce level. (srh)