Gold drops to over one-year low as fading Middle East peace hopes fan inflation fears - CNBC

AI desk brief

Spot gold fell 2.7% to $3,881.70/oz on Thursday, its third consecutive decline, touching its lowest since October 2025; December futures lost 2.8% to $3,888.70. Brent rose over 2% as Trump said the U.S. did not need an Iran deal, weakening peace hopes; higher oil could pressure bullion if inflation concerns sustain tighter-policy expectations. The report cited an 85% probability of a 25bp December hike and a dollar index near a 19-month high, with Friday’s U.S. PPI next. Silver fell 2.8% to $50.24, platinum 1.1% to $1,520.30 and palladium 2.8% to $998.57.