Gold Recovers From 3,878 USD as Traders Weigh Hot Producer Prices Against Record ETF Holdings
Published on 11/13/2026 at 18:01 | Editorial boerse-global.de
Gold clawed back some ground on Thursday, trading at 3,887.14 USD an ounce after sinking to a more than one-year low in the prior session, as bargain hunters moved in and short-term momentum gauges flashed oversold. The bounce came even as fresh US inflation data kept the pressure on the metal's non-yielding appeal.
The October producer price report landed with a split message. The U.S. Bureau of Labor Statistics put the annual rate at 6.5%, up from 6.3% in September, while the seasonally adjusted monthly increase slowed to 0.3% from 1.4% in September. For bullion, the softer month-on-month reading offers some relief; the firmer yearly figure keeps alive the inflation worries that feed expectations of further US rate hikes.
Fed Officials Keep the Hawkish Tone
Those expectations were reinforced by remarks from two regional Fed presidents on Wednesday. Chicago Fed President Austan Goolsbee stressed the persistence of inflation pressure, while New York Fed President John Williams said additional rate increases were likely. According to CME FedWatch, markets were on Wednesday overwhelmingly pricing a 25 basis point hike in December. The next scheduled pointer on the policy path comes with the release of the FOMC meeting minutes on 18 November.
The hawkish chorus lifted the dollar and cemented rate-rise bets, dragging spot gold to 3,878.93 USD an ounce on Wednesday — a multi-week low that illustrates how forcefully rate expectations are outweighing recent fund buying.
Should investors sell immediately? Or is it worth buying Gold?
A Demand Side That Keeps Pushing Back
That buying has been substantial. The World Gold Council reported on 5 November that gold ETFs attracted net inflows of 2.7 billion USD worldwide in October, lifting holdings to a record 4,275 tonnes at month-end. Third-quarter figures from the same body had already shown global gold demand of 1,369 tonnes, down 1% year on year, with central banks and other official institutions adding 321 tonnes net and ETFs accounting for a further 211 tonnes.
The tension for investors is plain: fund flows are propping up the demand side while rate signals weigh on pricing. For a friendlier price outlook, that physical and institutional demand would need to carry more weight — assuming restrictive Fed expectations persist.
Goldman Cuts Its Sights
A more cautious read also emerged from Goldman Sachs, which media reports on 5 November said had trimmed its year-end 2026 target to 4,150 USD an ounce from 4,650 USD. The bank cited a more restrictive Fed outlook, and it lowered its 2027 forecast too, to 4,800 USD from 5,400 USD an ounce.
Gold at a turning point? This analysis reveals what investors need to know now.
Wednesday's selloff had been driven by a firmer dollar, rising US Treasury yields and hawkish Fed commentary. Thursday's rebound, according to Reuters, reflected bargain hunting and oversold short-term indicators. Kelvin Wong of OANDA characterised the move as position adjustment following stretched momentum readings, adding that further support could come from falling US yields if they take pressure off the dollar.
Near term, the scope for extending the recovery rests largely on whether yields and the greenback retreat. The producer price data offered a mixed signal on that front, leaving gold caught between institutional demand on one side and US monetary policy on the other.
Ad
Gold Stock: New Analysis - 13 November
Fresh Gold information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
