The recovery came despite a firm U.S. dollar and elevated Treasury yields, both of which weigh on precious metals. October consumer prices rose 0.4%, above the 0.3% forecast, while core inflation increased 0.3%, against expectations of 0.2%. The Bureau of Labor Statistics did not release annual October inflation rates because comparable observations were unavailable after the October 2025 government shutdown.

The inflation report followed stronger-than-expected employment figures: the U.S. added 165,000 jobs in October, unemployment fell to 4.1%, and average hourly earnings rose 0.4%. Together, the data reinforced expectations of a Federal Reserve rate increase at its Dec. 8-9 meeting. Interest-rate futures priced in an approximately 88% chance of a 25-basis-point increase and a 12% chance of a 50-basis-point move. Fed Governor Christopher Waller said persistent core inflation could justify a larger adjustment.

The 10-year Treasury yield briefly topped 5.00% Tuesday before easing to about 4.98%; the dollar index was near 102.30. Jobless claims are due Thursday and October producer prices Friday, both at 8:30 a.m. EST. Treasury markets are closed Wednesday for Veterans Day, while U.S. equity trading continues.

Oil also turned higher as uncertainty over U.S.-Iran diplomacy and Gulf shipping offset hopes for de-escalation. Brent rose about 1.4% to $92.77 a barrel and Nymex WTI gained roughly 0.9% to $86.80 in European morning trading, rebounding from Tuesday settlements of $91.49 and $86.04, respectively. Iranian security chief Mohsen Rezaei said Tehran would not allow enriched nuclear material to leave the country and warned of retaliation if the United States launched further attacks. He said formal negotiations were not underway, though proposals had been conveyed through Qatar. Thirty-seven commercial vessels were reportedly attacked in October, the highest monthly total since the conflict began.

Equity markets were mixed to firmer before the U.S. open. Japan’s Nikkei 225 rose about 1.3%, China’s Shanghai Composite gained 0.5%, and Hong Kong shares fell; Europe’s Stoxx 600 was up around 0.3%. U.S. index futures pointed to a firmer start. On Tuesday, the Dow fell 0.30%, the S&P 500 lost 0.38% and the Nasdaq Composite declined 0.74% as higher yields pressured shares.