Gold fell 0.86% to $4,025.40 an ounce, the lowest level since early September, while silver slid 1.65% to $54.10 per ounce, marking a 10‑month trough. The dip comes as the COMEX benchmark slipped below its previous close of $4,042.20 and $54.695, respectively.
Brent crude surged 4% to $112.96 a barrel, reaching a five‑month high, while WTI edged to $98.12. The jump reflects fears of supply disruptions in West Asia, feeding concerns that inflation may stay elevated and keep Fed rates high—an unfavourable backdrop for non‑interest‑bearing assets.
Geopolitical jitters added to the pressure. Saudi Aramco evacuated its Dhahran HQ amid skirmishes with Houthi forces, and a Libyan pipeline shutdown cut output from the Hamada and Tahara fields. These events tightened global oil supply expectations, pushing prices higher.
The U.S. Federal Reserve’s policy meeting on Oct. 27‑28 remains the key watchpoint. Market participants are braced for the possibility of rate‑hike signals, which would likely dampen gold and silver further. Any easing in oil prices or a shift in geopolitical tensions could lift the bulls.
Indian investors also track the rupee, as gold and silver imports are heavily priced in dollars. A weaker rupee would raise domestic bullion costs, while a stronger rupee could provide temporary relief. The next major data release—U.S. CPI on Oct. 30—will offer additional clues on the inflation trajectory.