Gold and silver prices edged higher in international markets on Friday, November 13, recovering some ground after a sharp correction in the previous sessions. However, the rebound comes amid continued uncertainty over the US Federal Reserve’s interest rate outlook, a firm dollar and changing expectations around global inflation.
On COMEX, gold futures were trading at $3,911.40 per ounce, up $26.10 or 0.67% from the previous close of $3,883.30 an ounce. Prices touched an intraday high of $3,920.40 an ounce.
COMEX silver futures were trading at $50.565 per ounce, up $0.50 or 1%, after closing at $50.005 an ounce in the previous session. Silver touched a high of $50.660 an ounce.
The recovery follows a period of sustained weakness in precious metals. Gold and silver had come under pressure after stronger-than-expected US inflation data reinforced expectations that the Federal Reserve could keep interest rates higher for longer.
Why are gold and silver prices recovering?
The recent correction in precious metals has largely been driven by changing expectations around US monetary policy.
US consumer prices rose 0.4% in October, against market expectations of 0.3%, strengthening concerns that inflation may remain persistent. This has raised expectations of a possible rate hike by the Federal Reserve in December.
Higher interest rates generally weigh on gold and silver because these precious metals do not offer interest income. When bond yields and returns on interest-bearing assets rise, the opportunity cost of holding bullion increases.
A stronger US dollar has also added to the pressure. Since gold and silver are priced internationally in dollars, a stronger dollar makes these metals more expensive for buyers using other currencies, potentially weighing on demand.
However, Friday’s gains indicate some recovery after the recent decline, although it is too early to establish whether the rebound signals a sustained reversal in the trend.
What are experts saying about the gold and silver outlook?
Ashish Rajodiya, Head of Commodities at PL Capital, attributed the recent weakness in precious metals to hotter-than-expected US inflation, expectations of tighter monetary policy and subdued investment demand.
He said the rise in US inflation had pushed the dollar towards its highest levels since April 2025, while markets had increasingly priced in a December rate hike.
US jobless claims also came in at 200,000, above expectations of 195,000, although the relatively low number indicated that layoffs remained contained. This could give the Federal Reserve room to maintain a tighter monetary policy stance.
Rajodiya said US producer price data would be an important trigger for precious metals. A softer reading could ease rate-hike concerns and help gold and silver stabilise, while another stronger-than-expected reading could extend the pressure.
Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions and President of the India Bullion and Jewellers Association (IBJA), pointed to reduced safe-haven demand amid hopes of possible peace agreements between the US and Iran and between Russia and Ukraine.
According to Kothari, gold has breached the $4,000-an-ounce level, with $3,900 an ounce emerging as an important level to watch. Silver, meanwhile, has been trading in the $51-$53 anounce range, and a decisive move outside this range could determine its near-term direction.
What should investors watch next?
The near-term direction of gold and silver will depend largely on US inflation indicators, Federal Reserve commentary, movements in the dollar and bond yields, and geopolitical developments.
For Indian investors, movements in the rupee will also matter. A weaker rupee can cushion the impact of a decline in international bullion prices, while a stronger rupee can amplify the fall in domestic prices.
Domestic bullion prices may therefore not mirror international movements exactly.
NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.