Gold sinks after CPI beat and hawkish Fed remarks

NEW YORK, Nov. 10, 2026 (GoldSquawk) - Gold fell sharply on Tuesday, Nov. 10, 2026, after U.S. October inflation came in above expectations and hawkish Federal Reserve remarks lifted bets on a larger December rate increase, according to GoldSquawk settlement data, the U.S. Bureau of Labor Statistics and Reuters [S3][R6][R7][R4].

For traders, the drop sharpened the policy test for bullion because Reuters said the hotter inflation print pushed up the dollar and Treasury yields and reinforced expectations of a bigger Fed move, while the Federal Reserve Bank of St. Louis put the U.S. 10-year real yield at 2.63% as of Nov. 6, a level that raises the carry disadvantage of non-yielding gold [R4][D5].

Inflation surprise hits bullion

The key trigger came at 13:30 UTC on Tuesday, Nov. 10, 2026, when the Bureau of Labor Statistics reported October CPI rose 0.4% from the previous month, above the 0.3% forecast, while core CPI rose 0.3%, above the 0.2% consensus [R6][C2][C3]. On a yearly basis, headline CPI was 3.9%, down from 4.0% previously, according to the Bureau of Labor Statistics and FRED figures on the economic calendar [R6][C1].

Reuters said economists in its survey had expected headline CPI to rise 0.3% on the month and core CPI to rise 0.2% [R3]. After the release, Reuters said gold fell more than 2% as the stronger inflation reading lifted the dollar and Treasury yields [R4].

GoldSquawk futures data indicated COMEX gold was at $4,084.00 before the first headline of the day at 10:51 UTC, reached an intraday high of $4,087.10 at 13:09 UTC, and later fell to $4,022.00 at 16:48 UTC [P1][P2][P3].

Waller comments added to rate-hike bets

Before the CPI release, Reuters reported gold was already down more than 1% after hawkish comments from a Fed official weighed on bullion [R5]. Reuters later identified that official as Waller, who said the Fed should raise rates in December even if inflation cooled and could consider a half-point move if inflation worsened [R7].

Reuters quoted Waller as saying that if core CPI rose 0.3% or more from September, “a stronger policy move may be needed” [R7]. The Bureau of Labor Statistics then reported core CPI at 0.3% for October [R6]. Reuters said the combination of the CPI reading and Waller’s remarks led traders to build bets on a 50-basis-point increase in December [R4].

The firmer report also challenged hopes for a smoother inflation slowdown. Kiplinger said on Nov. 9, 2026, that Wells Fargo economists expected the October report to reinforce a slow disinflation process and support another Fed hike in December, while UBS economist Alan Detmeister forecast core CPI at 0.2% on the month [R1].

Positioning shifts and the next marker

The selloff hit a market that was already seeing weaker speculative backing. CFTC data compiled by GoldSquawk put the COMEX gold speculative net position at 179.5K contracts as of Nov. 3, down 6.9K on the week and marking an eighth straight weekly decline [D4]. SPDR Gold Shares reported a 0.3-tonne outflow in the week to Nov. 6, with 11.8 tonnes of outflows over four weeks [D3].

Monday’s settlement was $4,115.00 an ounce, up $39.20, according to GoldSquawk settlement data, underscoring the scale of Tuesday’s reversal [S2]. The next scheduled U.S. inflation catalyst is producer prices on Nov. 13, with Forex Factory consensus at 0.4% month on month for PPI and 0.3% for core PPI [C6][C5].