Gold and silver prices are being hit hard again; a selloff that has erased an estimated $1.1 trillion from their combined market value over the past 24 hours.
Gold fell another 1.4% today to around $3,932 per ounce, its lowest level since November 4, while silver dropped roughly 1.3% toward $51.
The reason is becoming increasingly clear: the U.S. inflation report has forced traders to rethink how high interest rates may need to go.
What you'll learn 👉
Hot Inflation Has Changed the Fed Trade
October CPI rose 0.4% month over month, above the 0.3% forecast, while core inflation also came in stronger than expected.
That has pushed expectations for another Federal Reserve hike sharply higher.
Markets now price roughly an 89% probability of a 25-basis-point increase in December and around an 11% chance of a larger 50-basis-point move.
Deutsche Bank has also added another 25-basis-point hike in January 2027 to its forecast, citing persistent inflation pressure.
That is a difficult combination for precious metals.
BREAKING: Over $1.1 TRILLION has been wiped out from gold and silver in the past 24 hours. https://t.co/F1pWx3QeVw
— Bull Theory (@BullTheoryio) November 12, 2026
Gold and silver do not pay interest, so higher Treasury yields increase the opportunity cost of holding them.
The Dollar Is Making Things Even Worse
The second problem is the U.S. dollar.
Hot inflation and higher-rate expectations have pushed the dollar to a 19-month high. Because gold and silver are priced in dollars, a stronger greenback makes both metals more expensive for international buyers.
This creates a double hit: yields rise at the same time the dollar strengthens.
BlackRock also identified higher real yields, dollar strength and profit-taking as the central forces behind the recent precious-metals correction.
Read also: Gold Price Today: Central Banks Buy 321 Tonnes in Biggest Quarter Since 2024
Was $1.1 Trillion Really “Wiped Out”?
Bull Theory estimates that more than $1.1 trillion has disappeared from the combined valuation of gold and silver during the latest move.
That should not be interpreted as $1.1 trillion of investors physically withdrawing money.
Precious-metals “market cap” estimates multiply the value of the above-ground supply by the current market price. When gold and silver fall, trillions of dollars in theoretical asset value can disappear without an equivalent amount of cash actually being sold.
The scale still shows how violent the repricing has been.
For gold, $3,900 is now the immediate area to watch after $4,000 failed.
Silver is testing the $50-$51 region, with $50 carrying obvious psychological importance.
The next macro test comes from U.S. producer inflation data on Friday. Another hot reading would strengthen the case for further Fed tightening and could keep both metals under pressure.
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