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DOREX WEEKLY GOLD MARKET UPDATE – w/e 13.11.26: Gold Faces Renewed Pressure as US Inflation Reinforces Interest Rate Expectations

Issued by Dorex Australia

DOREX WEEKLY GOLD MARKET UPDATE – w/e 13.11.26: Gold Faces Renewed Pressure as US Inflation Reinforces Interest Rate Expectations

Week in Review (Gold Price – USD/oz)

• High: US$4,148.94
• Low: US$3,852.27
• Average: US$3,990.89
• Close: US$3,915.66

Traditionally regarded as a hedge against inflation, gold is increasingly responding to the monetary policy measures introduced to contain it.

Gold experienced renewed selling pressure during the week ended Friday, 13 November 2026, as stronger US inflation data, rising Treasury yields and a strengthening US dollar prompted investors to reassess expectations for Federal Reserve monetary policy.

Spot gold declined US$155.23, or 3.81%, from the previous Friday’s closing price of US$4,070.89, finishing the week at US$3,915.66 oz.

The principal influence on gold markets was the release of October US Consumer Price Index (CPI) data on Tuesday, which indicated that inflationary pressures remained persistent despite earlier monetary tightening.

The figures reinforced market expectations that the Federal Reserve may need to increase interest rates further to contain inflation, placing additional pressure on gold prices.

Subsequent commentary from senior Federal Reserve officials supported expectations of a more restrictive monetary policy position. US Treasury yields strengthened, with the benchmark 10-year yield moving above 5%, while the US dollar advanced against major currencies.

Higher Treasury yields increase the relative attraction of interest-bearing securities, while a stronger US dollar raises the effective purchase price of gold for investors holding other currencies.

Friday’s Producer Price Index (PPI) figures provided further evidence of continuing inflationary pressures, although the monthly increase was slightly below market expectations.

Geopolitical developments in the Middle East continued to influence financial markets. Renewed uncertainty surrounding US–Iran relations further reinforced concerns that energy costs could sustain inflation, delaying any easing of monetary policy.

Gold’s traditional safe-haven characteristics were tested during the week by investor expectations of higher interest rates and the associated strengthening of the US dollar.

Institutional Capital Allocation Remains Relevant

Despite the week’s price movements, institutional investment research continues to identify potential sources of demand for gold.

On Thursday, 12 November, French investment bank Société Générale published research suggesting that scheduled commodity index rebalancing in January 2027 could generate approximately US$3.3 billion in net gold purchases.

The forecast reflects adjustments required by funds tracking major commodity benchmarks, including the Bloomberg Commodity Index and S&P GSCI, following changes in relative commodity prices and portfolio weightings.

Importantly, the anticipated purchases would arise from institutional portfolio allocation requirements rather than short-term shifts in investor sentiment or discretionary trading decisions.

The research also highlighted the increasing representation of precious metals within diversified commodity portfolios, with their target weighting in the S&P GSCI rising to 10% for 2027.

These developments reinforce the distinction between short-term gold price movements and the longer-term role of the metal within institutional investment strategies.

“While short-term investors may sell gold or close out futures positions to meet margin requirements and rebalance portfolios, central banks and sovereign investors generally hold gold as a strategic reserve asset over longer investment horizons,” said Dorex CEO, John Kochanski.

Gold remains a globally recognised store of wealth, independent of corporate earnings and the creditworthiness of individual issuers. Its established role in capital preservation and portfolio diversification continues to support its relevance to private and institutional investors.

Outlook

Looking ahead, financial markets will likely remain focused on US inflation indicators, Federal Reserve commentary and movements in Treasury yields and the US dollar.
The prospect of further US monetary tightening may continue to influence gold prices in the near term, particularly as investors position portfolios ahead of the Federal Reserve’s December policy meeting.

Geopolitical uncertainty, central bank reserve diversification and prospective institutional investment flows remain relevant considerations in assessing longer-term demand.

The week’s US$296.67 trading range illustrates the sensitivity of gold prices to changes in monetary policy expectations and financial market positioning.

“Short-term price adjustments do not diminish gold’s established function as a safe store of wealth or its role in diversified investment portfolios,” said Mr Kochanski.

“For investors, the central consideration always remains the distinction between temporary market pricing pressures and the longer-term objectives of capital preservation, diversification and financial security,” he said.

ENDS

About Dorex Australia

For further information: John Kochanski, CEO e [email protected] m +61 (0)411 831 122 About Dorex Dorex is an Australian specialist advisor to gold producers. Focused on near-term production opportunities, including the reclamation of historic resources and tailings reprocessing, Dorex helps structure bespoke, non-dilutive financing solutions that advance capital efficiency and environmental stewardship in equal measure. Dorex enables producers to accelerate their path to revenue while meeting the highest standards of sustainability and community responsibility.

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