Gold prices recovered on 11 November after falling sharply in the previous session, with the precious metal holding above the US$4,000 per ounce level despite renewed concerns over inflation and the prospect of higher US interest rates.
Spot gold traded around US$4,040 per ounce, following a decline of approximately 3% on Tuesday. Stronger-than-expected US inflation data and expectations of further Federal Reserve tightening had contributed to the earlier selling pressure.
The latest recovery comes as analysts assess whether the recent correction represents a temporary setback or a change in the broader direction of the gold market. The US$4,000 level has emerged as an important support area, with prices managing to remain above it despite pressure from higher bond yields and a stronger US dollar.
Standard Chartered maintains a positive outlook, forecasting an average gold price of US$4,650 per ounce during the fourth quarter of 2026, followed by a further increase to US$4,850 in the first quarter of 2027.
The bank points to continued investment demand and central bank purchases as important sources of support. Gold-backed exchange-traded products attracted 211 tonnes of investment demand during the third quarter, their strongest quarterly inflows since 2024. A further 19 tonnes entered these products during October.
Central bank purchases also remained significant, reaching 321 tonnes in the third quarter, above Standard Chartered’s estimate of 200 tonnes. Continued official-sector buying has provided an additional source of demand as central banks diversify their reserves.
The bank also considers gold’s ability to maintain support above US$4,000 despite stronger economic data an indication of underlying market resilience. However, a move above US$4,200 would represent the next significant technical level to watch.
CPM Group has also maintained a constructive view of the precious metals market following the recent correction. The research group considers the latest decline a period of consolidation following several days of gains, rather than evidence that the broader upward trend has ended.
Its assessment points to continued demand for precious metals amid concerns surrounding economic uncertainty, government debt, inflation and geopolitical developments. Uncertainty over technology company valuations and wider financial market conditions has also contributed to interest in alternative stores of value.
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