- Trump says 'we don't need a deal with Iran'
- Spot gold hits lowest since October 2025
- Dollar near 19-month peak
- US PPI data due on Friday
Nov 12 (Reuters) - Gold prices slid 3% on Thursday, extending losses for a third straight session to hit a more-than-one-year low, as oil prices climbed on fading hopes for peace in the Middle East that spurred fears of higher inflation and elevated interest rates.
Spot gold dipped 2.9% to $3,871.31 per ounce by 12:30 p.m. ET (1730 GMT), having touched its lowest level since October 2025 earlier in the session.
US gold futures for December delivery fell 3.2% to $3,872.00 per ounce.
US President Donald Trump said on social media on Thursday that the US did not need a deal with Iran, quashing hopes of a deal to end the conflict, which started in late February with US-Israeli strikes on Iran and has spread across the Middle East.
"If crude oil prices spike higher on this news, that's negative for gold from an inflation perspective," said Jim Wyckoff, a market analyst at American Gold Exchange.
Oil rose over 1%, fanning inflationary concerns and expectations that the Federal Reserve could keep interest rates higher for longer.
A hot US inflation reading on Tuesday, hawkish remarks from Fed officials this week and a US dollar index rally to a near 19-month high "are working to press the gold market lower", Wyckoff added.
Markets see a 91% chance of a 25-basis-point rate hike in December, while the probability of a larger 50-basis-point move also increased. <FedWatch
Higher interest rates reduce the appeal of non-yielding bullion, while a stronger dollar makes gold costlier for overseas buyers.
Meanwhile, Nvidia CEO Jensen Huang's exit stirred concerns about the future of the AI heavyweight and could have far-reaching consequences for US chip export policy.
The news could be impacting gold "maybe in some ancillary fashion...due to just generalized volatility, but I would not draw a direct correlation," David Meger, director of metals trading at High Ridge Futures, said.
Investors now await the US producer price index data due on Friday for monetary policy outlook.
Spot silver fell 3.3% to $49.99 per ounce after touching its lowest level since November 4 earlier in the session, while spot platinum lost 1.1% to $1,520.69 after hitting its lowest since November 6. Spot palladium dropped 3% to $996.99, a day after reaching its highest level since October 22.
Reporting by Vedika Thorat and Anjana Anil in Bengaluru; Editing by Vijay Kishore
Source: Reuters