Gold pares gains as mixed US PPI fuels Fed tightening fears
ITF Team2 min read
Gold slipped to $3,852 on 11/13/2026, its lowest since Oct 2025, as a mixed US PPI and hawkish Fed remarks kept the dollar strong.
Key takeaways
- Gold fell to $3,852 on 11/13/2026, the lowest level since October 2025.
- The US PPI for October rose 0.3% MoM, missing the 0.4% forecast.
- The US Dollar Index hovered around 103.19, just below its 19‑month high of 103.30.
- Short‑dated US yields are about 40 basis points higher since Tuesday, reflecting Fed hawkish comments.
Gold (XAU/USD) trimmed its earlier rally on Friday, 13 Nov 2026, after briefly topping $3,900. The metal closed around $3,880 and fell to $3,852 on Thursday, marking its lowest price since October 2025. The pull‑back was driven by a mixed US Producer Price Index (PPI) report and renewed hawkish signals from Federal Reserve officials, which kept expectations of further rate hikes alive.
Mixed PPI data fails to revive gold momentum
The US PPI for October rose 0.3% month‑on‑month, well under the 0.4% consensus and down sharply from September’s 1.4% surge. Annual producer inflation edged up to 6.5% from 6.3%, still below the 6.6% forecast. Core PPI also rose 0.3% MoM, matching expectations, while its year‑over‑year rate held at 5.0%. The softer‑than‑expected price pressures reduced the immediate inflation‑risk premium that sometimes supports gold, contributing to the metal’s downside.
At the same time, the US Dollar Index (DXY) stayed near 103.19, only a whisker below the 19‑month peak of 103.30 reached earlier in the week. A stronger dollar raises the price of gold for holders of other currencies, while rising short‑term Treasury yields increase the opportunity cost of a non‑yielding asset.
Fed officials’ hawkish remarks keep tightening bets alive
Federal Reserve officials continued to signal a restrictive monetary stance. Chicago Fed President Austan Goolsbee warned that inflation will dictate policy and that the Fed still has work to do. Cleveland Fed President Beth Hammack described inflation pressures as moving in the wrong direction, urging a shift to a more restrictive stance. San Francisco Fed President Mary Daly reiterated a bias toward further tightening, and Dallas Fed President Lorie Logan called for at least two more 25‑basis‑point hikes.
ING analysts noted a “powerful, macro‑driven rally in the dollar” after Fed’s Christopher Waller hinted at a 50‑basis‑point hike in December. Short‑dated yields have risen roughly 40 bp since Tuesday, and the market now prices back‑to‑back hikes in December and January, extending the total tightening cycle to about 85 bp.
Read also: Silver deficit and higher yields shape market overview
Technical picture: bearish bias under key moving averages
On the daily chart, XAU/USD remains below its 21‑day, 50‑day and 100‑day simple moving averages, reinforcing a near‑term bearish bias. The RSI sits at 37, beneath the 50 mid‑line, while the MACD stays in negative territory, indicating limited upside momentum.
Resistance lies at the $3,900 horizontal barrier, followed by the psychological $4,000 level and the 21‑day SMA near $4,030. Further upside would need to clear the 50‑day SMA at $4,154 and the 100‑day SMA at $4,197, which together form a broader supply zone. On the downside, Thursday’s low of $3,852 provides immediate support, with the next psychological floor at $3,800. A break below $3,800 could trigger a deeper decline toward $3,750.
- Current price: ~ $3,880
- Key resistance: $3,900, $4,000, $4,030
- Support levels: $3,852, $3,800
- US PPI Oct: +0.3% MoM (forecast +0.4%)
- DXY: 103.19 (near 19‑month high)
Frequently asked questions
Why did gold drop despite briefly crossing $3,900?
Gold fell because the October US PPI came in lower than expected, reducing inflation concerns, while Fed officials reiterated the need for more tightening. A stronger dollar and higher short‑term yields also made the non‑yielding metal less attractive, pulling price down to $3,852.
What technical levels should traders watch for XAU/USD?
Traders should watch resistance at $3,900 and $4,000, with the 21‑day SMA around $4,030 acting as the next barrier. On the downside, $3,852 (Thursday’s low) and the $3,800 psychological level are key supports; a break below $3,800 could open a path toward $3,750.
Official data sources
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This article is compiled from international market news for information only. It is not investment advice.