Investing.com — Gold prices remained below $3,900 an ounce on Thursday after a nearly 3% plunge in the previous session briefly sent bullion to a 13-month low, as rising oil prices and increasingly hawkish Federal Reserve signals heightened expectations of further interest-rate increases.
At 19:47 ET (00:47 GMT), spot gold rose 0.2% to $3,886.82 an ounce, while U.S. gold futures gained 0.1% to $3,890.67. Silver edged up to $50.0785 an ounce, while platinum advanced 0.2% to $1,524.00. Spot palladium rose 0.3% to $1,001.40, while palladium futures gained 0.5% to $997.00. The U.S. dollar Index was little changed at 103.21.
The selling pressure has intensified since Tuesday, when stronger-than-expected U.S. consumer inflation data and hawkish comments from Federal Reserve officials prompted investors to reassess the interest-rate outlook.
Treasury yields extended their surge on Thursday, with some maturities climbing more than 12 basis points. Shorter-dated securities recorded the sharpest increases because they are particularly sensitive to shifts in expectations for monetary policy.
Further hawkish signals from policymakers added to the pressure. Chicago Fed President Austan Goolsbee said on Thursday that the central bank needed to contain inflation before economic activity became overheated.
San Francisco Fed President Mary Daly also indicated that additional rate increases would probably be necessary, arguing that inflation remained elevated beyond industries directly exposed to tariffs and oil prices.
Markets are now fully pricing in a quarter-point rate increase in December, with some investors also considering a possible half-point move. Bets on further tightening have in some cases extended beyond December.
Inflation concerns received another boost from rising energy prices after U.S. President Donald Trump played down the possibility of a diplomatic breakthrough with Iran. Brent crude climbed towards $96 a barrel on Thursday after Trump said Washington did not need an agreement with Tehran and indicated that military action remained an option.