Gold Prices Hit 13-Month Low Amid Fed Rate Fears

Gold prices reached a 13-month low on November 13, 2026, dropping nearly 3% in a single session and totaling a weekly decline of 4.4%. The downward trend is driven by high inflation in the United States and expectations that the Federal Reserve System will maintain higher interest rates for longer. Market participants currently price an 85% probability of a 25-basis-point rate hike in December.

Prices saw a minor recovery on Friday, rising 0.2% to US$3,883.05 per ounce. This uptick was triggered by safe-haven demand following attacks on Saudi energy infrastructure and shipping disruptions in the Strait of Hormuz, which pushed Brent crude prices toward $96 per barrel. On the Multi Commodity Exchange in India, gold closed at approximately ₹1.36 lakh per 10 grams.

Geopolitical volatility persists as President Donald Trump stated that the United States does not require a deal with Iran and maintains military action as an option. Within the Federal Reserve, opinions on future policy remain divided; San Francisco Fed President Mary Daly indicated a need for further rate increases, while Cleveland Fed President Beth M. Hammack stated she does not believe the bank requires more aggressive rises.