Gold prices rebounded slightly on Friday, November 13, 2026, after a sharp drop to a near one-year low the previous day. The precious metal climbed as much as 1% to trade near $3,920 an ounce, following a dip that saw it hit a 13-month low on Thursday. The rally was driven by long-term bullish investors who seized the opportunity to buy the dip.
The decline in gold prices was fueled by increased bets on the Federal Reserve raising interest rates. Yields on some Treasuries surged by more than 12 basis points in the prior session, with short-term securities showing the most significant increases. These securities are particularly sensitive to changes in central bank policy, reflecting growing expectations of tighter monetary conditions.
The drop in gold prices highlights the metal's sensitivity to interest rate expectations. Higher rates typically increase the opportunity cost of holding non-yielding assets like gold, making them less attractive to investors. The recent volatility underscores the challenges faced by gold investors in navigating shifting monetary policies.