Gold price falls as Fed rate hike bets rise – market overview
ITF Team3 min read
Gold (XAU/USD) slides nearly 4.5% this week as US yields climb and Fed hike expectations intensify, while oil drops over 2% and crypto sees heightened sell‑off pressure.
Key takeaways
- Gold (XAU/USD) is set to close the week down about 4.5% amid rising US Treasury yields.
- US producer price index (PPI) for October rose 6.5% month‑on‑month, slightly below expectations.
- Oil prices fell more than 2% for the week as fears of renewed US‑Iran conflict eased.
- Bitcoin miners in Paraguay pay $350 million annually for power, but AI competition is reducing demand.
Global markets opened on 14/11/2026 with a risk‑off tone. The biggest driver was a sharp rise in expectations that the Federal Reserve will resume rate hikes, pushing US yields higher and dragging gold to its worst week since March. At the same time, oil slipped over 2% for the week as the threat of fresh US‑Iran fighting receded, while cryptocurrency assets continued to lose ground amid macro uncertainty.
Currencies and central banks
The US dollar kept its upward momentum after the October producer price index (PPI) came in at +6.5% month‑on‑month, just shy of the 6.6% forecast. Higher‑than‑expected inflation at the producer level reinforced the view that the Fed may need to tighten further, despite recent comments from Fed officials that inflation is not yet on a 2% path. This backdrop lifted Treasury yields, especially the 10‑year note, and supported the greenback against most majors.
In the Asian session, the Japanese yen and the British pound fell modestly as investors priced in a stronger dollar. The euro remained relatively flat, while the New Zealand dollar (NZD) showed slight resilience after local data hinted at a softening of inflation pressures.
Gold and commodities
Spot gold (XAU/USD) posted its worst weekly performance since March, sliding nearly 4.5% as US Treasury yields surged. The market’s focus on a potential Fed rate hike raised real yields, making non‑yielding gold less attractive. Technical analysis points to a bearish breakdown and a possible test of key Fibonacci support levels around $1,900.
Crude oil prices also turned lower, dropping more than 2% for the week. The decline was driven by easing concerns over a new US‑Iran confrontation, which had previously added a geopolitical premium to oil. With the risk premium fading, the market retreated toward supply‑demand fundamentals.
Read also: Bitcoin downtrend gains momentum as gold pares losses after US PPI rise
Cryptocurrency market
The crypto sector extended its weekly losses. Bitcoin and Ethereum both traded below key psychological levels, with Ethereum staying under $2,000 after the US PPI release. Market sentiment was further dampened by macro‑economic uncertainty and heightened geopolitical tension, which prompted investors to shift toward safer assets.
A notable development came from Paraguay, where state utility contracts that have supplied about 4% of global Bitcoin mining power are set to expire at the end of 2027. The country’s miners currently pay $350 million a year for electricity, but the rise of AI‑driven mining hardware is expected to erode the profitability of such operations.
Stocks and corporate news
Equity markets were mixed. Nvidia suffered its longest weekly losing streak since 2012, shedding $1.7 trillion in market value after CEO Jensen Huang’s resignation. Meanwhile, Payward, the parent of Kraken, reported a 66% drop in adjusted EBITDA year‑on‑year, even as its share of global spot trading nearly doubled.
On the legal front, the US Supreme Court agreed to hear a case involving Robinhood’s alleged omission of IPO information, a move that could have implications for brokerage disclosures and investor protection.
Key calendar events for the next 24 hours
- 14/11/2026 14:30 UTC – US Consumer Price Index (CPI) release; high impact – CPI data will influence Fed rate expectations and USD strength.
- 14/11/2026 16:00 UTC – Eurozone inflation (HICP) data; medium impact – will affect ECB policy outlook.
- 14/11/2026 18:00 UTC – US non‑farm payrolls; high impact – employment figures are a core driver of monetary policy decisions.
Frequently asked questions
Why is gold falling despite a weaker dollar on Friday?
Gold is under pressure because US Treasury yields have risen on stronger producer‑price data, which lifts real yields and makes non‑yielding gold less attractive, outweighing the modest dollar pull‑back.
What is the significance of Paraguay’s $350 million power contract for Bitcoin miners?
The contract supplies about 4% of global Bitcoin mining power. At $350 million a year, it reflects the high electricity cost of mining, but AI‑driven hardware is expected to reduce mining profitability, potentially ending the deal before its 2027 expiry.
Official data sources
Related news
- Bitcoin downtrend gains momentum as gold pares losses after US PPI rise
- Gold price forecast: Dollar strength extends downside targets
- Iran prepares zero‑oil‑revenue budget as exports dry up
- Dollar hits targets, silver eyes breakout as technicals tighten
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This article is compiled from international market news for information only. It is not investment advice.