Gold rose on Friday as bargain hunters moved in after prices sank to their lowest in more than a year, though the metal stayed on course for a weekly loss of about 3.5 per cent as traders braced for further rises in US interest rates. Spot gold climbed 1 per cent to $3,915.31 an ounce by 03:22 GMT, while US gold futures for December delivery gained 0.9 per cent to $3,919.60.
The rebound followed a sharp sell-off on Thursday, when spot prices hit their lowest since October 2025. Oil prices climbed as hopes for peace in the Middle East faded, stoking fears of higher inflation and of interest rates staying elevated for longer. Gold is typically seen as a hedge against inflation, but higher rates raise the cost of holding bullion, which pays no yield, and that has dulled its appeal to investors.
Kelvin Wong, a senior market analyst at OANDA, said Friday’s move looked more like a positioning adjustment than a change of direction, after several short-term momentum indicators hit extreme oversold levels in Thursday’s fall. He added that a sudden turn in US Treasury yields, which would slow the dollar’s rise, could give gold a short-term lift.
Markets now see an 89 per cent chance of a 25-basis-point US rate rise in December, with an 11 per cent chance of a larger half-point move, according to CME’s FedWatch tool. Federal Reserve Bank of New York President John Williams said on Thursday that more rate rises were likely as the central bank works to bring down stubbornly high inflation in an otherwise healthy economy. US data also showed new claims for unemployment benefits rose more than expected last week, though they remained at a level consistent with a stable labour market.
The metal is about 30 per cent below its record of $5,594.82 an ounce, set in late January, after a rally that ran through much of the year before reversing. Even so, official buyers have kept purchasing: central banks bought 321 tonnes in the third quarter, according to the World Gold Council, well above the five-year quarterly average of 227 tonnes.
Other precious metals also rose on Friday. Spot silver gained 1 per cent to $50.49 an ounce and palladium climbed 2.1 per cent to $1,014.50, though both were headed for weekly declines. Platinum rose 1.3 per cent to $1,538.22 and was on track for a modest weekly gain.
The next test for gold comes later on Friday, when US producer price data for October is due at 13:30 GMT. Traders will watch it closely for fresh clues on the Federal Reserve’s next move.
Sources: Reuters — “Gold rises on bargain hunting but heads for weekly decline” (https://www.reuters.com/world/india/gold-rises-bargain-hunting-heads-weekly-decline-2026-11-13/)
