Markets
Gold Drops 4.6% for the Week as the Dollar Hits a 2026 High and Traders Price a December Fed Hike
Image: PublicDomainPictures via Pixabay
Spot gold closed near $3,884 an ounce as Treasury yields jumped and rate-hike bets firmed, with the December 8-9 Fed meeting next on the calendar.
By Emma Cruz ·
Gold ended the week sharply lower as a stronger dollar, climbing Treasury yields and firmer bets on Federal Reserve rate increases weighed on a metal that pays no interest. A weekly market review published Saturday, Nov. 14, put spot gold at a Friday close of 3,883.94 dollars an ounce, a weekly decline of 4.56% [1]. The review said gold dipped as low as 3,852.62 dollars during the week after slipping through a support level near 3,869.96 but did not confirm a breakdown [1].
The slide built over several sessions. Reuters reported on Thursday, Nov. 12, that spot gold was down 0.2% at 3,977.99 dollars as of 0506 GMT, its lowest since Nov. 4, after stronger-than-expected U.S. inflation data on Tuesday and hawkish comments from Fed officials [2]. By later in the week the metal had fallen further, ending Friday roughly 94 dollars below that Thursday morning level [1][2].
The dollar was a central part of the story. Reuters said the currency climbed to a 19-month high against major peers on Thursday, which makes dollar-priced bullion more expensive for buyers holding other currencies [2]. A Yahoo Finance weekly review of rates and currencies put the dollar index at 103.41 on Friday, its best weekly performance since early October and its highest level since May 2025 [3]. The weekly market review described that reading as a new high for 2026 [1].
Treasury yields moved in the same direction. The two-year yield ended the week at 4.86%, up roughly 35 basis points, which the Yahoo Finance review described as its largest weekly jump in more than two years [3]. The 10-year yield stood at 5.14% and the 30-year at 5.47% [3]. Higher yields raise the opportunity cost of holding gold, which offers no coupon or dividend, and they have often coincided with a stronger dollar, a pairing that tends to pressure the metal.
The Fed outlook has shifted quickly. The Yahoo Finance review said October consumer price data beat economists' forecasts for a third straight month and that Fed Governor Christopher Waller endorsed a possible half-point rate hike if inflation momentum continues [3]. As of Friday, Nov. 13, CME FedWatch put the odds of a 25 basis point hike at the Dec. 8-9 meeting at 88.5%, with an 11.5% chance of a 50 basis point move, according to the weekly review [1]. Reuters reported that traders were fully pricing a hike in December and another in March 2027 [2].
Analysts quoted by Reuters offered a cautious read. Ilya Spivak, head of global macro at Tastylive, said the market was "pointedly struggling for a follow through" [2]. OCBC said it saw two-way risks in the near term but was not turning bearish on gold's medium-term outlook, the same report said [2].
Gold was not the only non-yielding asset under pressure. The weekly review said bitcoin fell about 9.9% over the week and traded near 67,300 dollars in a Saturday snapshot, as hawkish repricing of Fed expectations hit assets that offer no income [1].
Looking ahead, the main scheduled event is the Fed's Dec. 8-9 meeting, where a rate increase is already largely priced in [1]. Between now and then, markets are likely to key off incoming inflation and labor data, the path of the dollar and whether 10-year Treasury yields hold above 5%. For gold specifically, traders tracked in the weekly review were watching whether the metal can stay above the roughly 3,870 dollar support zone it tested last week [1].
Sources:
[1] ActionForex, "Hawkish Fed Repricing Punishes Non-Yielders: Gold and Bitcoin Slide as Dollar Surges to 2026 High", November 14, 2026. https://www.actionforex.com/action-insight/market-overview/weekly-report/660879-hawkish-fed-repricing-punishes-non-yielders-gold-and-bitcoin-slide-as-dollar-surges-to-2026-high/
[2] Reuters via Business Recorder, "Gold falls to over one-week low on firm dollar, Fed rate hike bets", November 12, 2026. https://www.brecorder.com/news/40448551/gold-falls-to-over-one-week-low-on-firm-dollar-fed-rate-hike-bets
[3] Yahoo Finance, "The Weekly Spread: What Shaped US Treasury Yields And The Dollar This Week", November 13, 2026. https://finance.yahoo.com/markets/currencies/articles/weekly-spread-shaped-us-treasury-012244050.html
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.