Gold price falls below $4,000; analyst sees support near $3,870
Spot gold dipped 0.4 per cent to $3,971.14 per ounce, slipping below the $4,000 mark. An independent analyst attributed the decline to higher-than-expected US October inflation data and hawkish Fed comments, which raised rate-hike expectations. He said support may emerge near $3,870 as oil prices ea
Gold prices have fallen below US$4,000 per ounce, with spot gold trading at US$3,971.14 in earlier Asian hours, down 0.4 per cent, Hong Kong's RTHK reported on 12 November 2026.
Independent foreign-exchange and commodity analyst Lo Chor-yan said the decline was triggered by US inflation data for October released this week. Although the month-on-month rise slowed, the figure still exceeded market expectations. Combined with more hawkish-than-anticipated comments from Federal Reserve officials, the data revived expectations of further US interest-rate increases, pushing gold back below the US$4,000 threshold.
Lo noted that international oil prices have recently retreated. He argued that the United States may not need to continue aggressively raising rates, and predicted that the US dollar would soften in the near term. Meanwhile, he said, investment demand for gold remains relatively strong.
Based on these factors, Lo believes gold will find support near US$3,870 per ounce. The analyst did not provide a specific timeline for when that support level would be tested.
Gold, traditionally seen as a hedge against inflation and currency depreciation, has been sensitive to shifting US monetary policy signals. Market participants are now watching for the next Fed meeting and additional economic data releases.