Gold Port Corporation (CSE: GPO | OTCQB: GPOTF)
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Precious metals markets diverged at Wednesday’s close. Spot gold gave back its early gains in late U.S. trading and fell below the $4,000-per-ounce psychological level, trading near $3,983.20, down $48.60, or 1.21%, on the day. Spot silver bucked the trend and edged higher to around $51.56, up $0.149, or 0.29%. Analysts attribute the pressure on gold primarily to a stronger U.S. dollar and rising expectations of further Federal Reserve rate hikes.
Tuesday’s U.S. October consumer price index proved to be the turning point for the market. The data showed headline inflation rose 0.4% month-on-month in October, above the 0.3% expected; core prices rose 0.3% month-on-month, also exceeding expectations. By component, shelter costs rose 0.3%, food prices rose 0.5% and energy prices rose 0.7%, with price pressures remaining stubborn across several categories.
Notably, affected by the federal government shutdown, comparable data for October 2025 were unavailable, and the U.S. Bureau of Labor Statistics did not publish the October year-on-year inflation rate. The employment report released the previous Friday was also stronger than expected: 165,000 jobs were added in October, the unemployment rate fell to 4.1%, and average hourly earnings rose 0.4% month-on-month. The combination of resilient employment and stubborn inflation further strengthened the market’s judgment that the Fed will continue to tighten monetary policy.
Interest rate futures markets have fully priced in a rate hike at the December 8-9 policy meeting. Wednesday’s futures market assessments showed an approximately 87.1% probability of a 25-basis-point hike and a 12.9% probability of a 50-basis-point hike. The U.S. dollar index rose about 0.7% on the day to near 102.90, approaching its highest level since April 2025, putting additional pressure on dollar-denominated gold. The benchmark 10-year U.S. Treasury yield briefly exceeded 5.00% on Tuesday; U.S. Treasury markets were closed Wednesday for Veterans Day, leaving Tuesday’s closing levels as the latest reference. The market will next focus on Thursday’s weekly initial jobless claims and Friday’s October producer price index; an upside surprise in PPI would further entrench rate-hike expectations.
Geopolitically, the situation in the Strait of Hormuz remains unclear. Iranian security chief Mohsen Rezaei said Iran will not allow enriched nuclear material to leave the country and insists that the United States must first meet Tehran’s conditions before negotiations and the reopening of this strategic waterway can proceed. Although U.S. President Donald Trump has recently downplayed the possibility of further large-scale military strikes and Qatar continues its mediation efforts, restrictions on commercial shipping have not been lifted, and reports of further attacks on vessels have heightened market concerns about Gulf energy supplies.
As a result, Brent crude futures rose $1.27, or 1.39%, to settle at $92.76 a barrel; New York Mercantile Exchange WTI crude rose $0.49, or 0.57%, to settle at $86.53. For gold, regional uncertainty supports safe-haven demand, but rising energy costs could also reinforce inflation expectations, creating mixed influences.
U.S. and European stock markets closed broadly higher on Wednesday. The Dow Jones Industrial Average rose about 0.5% to 52,486.49; the S&P 500 gained 1.3% to 7,619.38; the Nasdaq Composite rose 1.6% to 25,466.19. A renewed rally in artificial intelligence and semiconductor stocks helped Wall Street rebound from Tuesday’s inflation-driven selloff. Canada’s S&P/TSX Composite Index rose 241.27 points, or 0.67%, to 36,411.72. In Europe, the pan-European Stoxx 600 rose 0.72% to a record high of 663.04.
Technically, the next upside target for spot gold bulls is a return to the $3,987.96-$4,020.00 resistance zone; a sustained breakout would point to $4,064.71 and then $4,115.78. The bears’ target is a sustained break below $3,987.96, with support at $3,910.00-$3,890.00. For spot silver, the bulls’ target is a break above the $52.124-$53.119 resistance zone, while the bears’ target is a break below $51.090.
