Gold Price Crashes Below $3,900 as Fed Rate Hike Bets Overwhelm Safe-Haven Demand - Coinpaper

AI desk brief

Spot gold fell 2.9% to $3,871.31/oz on November 12, extending a three-session decline; the article attributes selling to Fed tightening expectations and dollar strength despite geopolitical uncertainty. It reports October CPI rose 0.4% month-on-month versus 0.3% expected, with markets assigning roughly 91% probability to a December 25bp hike. Higher expected real yields could pressure bullion, although nominal yields alone do not establish that channel. Citing the WGC, it reports third-quarter central-bank purchases of 321 tonnes and physically backed ETF inflows of 211 tonnes. Its outlook requires sustained recovery above $3,900 for stabilization, identifies $4,000 resistance and conditional downside toward $3,800, with Friday’s PPI potentially shifting policy expectations.