Gold slips below $4,000 as dollar climbs and Fed bets firm

Gold traded near $3,983.20 an ounce, down $48.60, or 1.21%. Spot silver was near $51.560, up $0.149, or 0.29%. The moves followed Tuesday’s hotter-than-expected U.S. inflation report, which showed consumer prices rising 0.4% in October and core prices increasing 0.3%; both readings exceeded forecasts of 0.3%. Shelter costs rose 0.3%, food prices 0.5% and energy prices 0.7%. The Bureau of Labor Statistics did not publish annual October inflation rates because comparable October 2025 observations were unavailable after the federal government shutdown.

A stronger-than-expected employment report on Friday added to the case for tighter policy: employers added 165,000 jobs in October, unemployment fell to 4.1%, and average hourly earnings rose 0.4% from the previous month. Futures-market assessments on Wednesday put the probability of a 25-basis-point increase at the Fed’s Dec. 8-9 meeting at about 87.1%, with a 12.9% chance of a 50-basis-point move. The dollar index rose about 0.7%, toward 102.90, near its highest level since April 2025. The 10-year Treasury yield briefly topped 5.00% on Tuesday; U.S. Treasury markets were closed Wednesday for Veterans Day. Weekly jobless claims are due Thursday and October producer-price data Friday, both at 8:30 a.m. EST.

Uncertainty over Iran and the Strait of Hormuz added another influence. Iranian security chief Mohsen Rezaei rejected suggestions that formal talks with Washington were underway, saying Iran would not allow enriched nuclear material to leave the country and that U.S. conditions had to be addressed before negotiations and reopening the waterway. President Donald Trump has played down the prospect of further major military strikes, while Qatar continues mediation. Shipping restrictions remain unresolved, and reports of further vessel attacks have raised concerns about Gulf energy supplies. Higher crude prices may support defensive demand for gold, but they can also fuel inflation expectations and rate-hike bets.

Brent crude settled up $1.27, or 1.39%, at $92.76 a barrel; Nymex WTI gained $0.49, or 0.57%, to $86.53. Both rebounded from two-month lows reached Tuesday. Global equities also advanced: the Dow rose about 0.5% to 52,486.49, the S&P 500 gained 1.3% to 7,619.38 and the Nasdaq climbed 1.6% to 25,466.19. The Russell 2000 added about 0.9% to 2,846.26. North America’s technology rebound, supported by strong quarterly results from CoreWeave, coincided with higher European and Canadian benchmarks. The Stoxx 600 reached a record 663.04, while Canada’s S&P/TSX Composite gained 0.67% to 36,411.72.

For gold, the reported resistance levels are $3,987.96 and $4,020.00, with further upside targets at $4,064.71 and $4,115.78. Support is marked at $3,910.00 and $3,890.00. Silver resistance is seen at $52.124 and $53.119; support is at $51.090 and $50.586.