Gold slipped 0.7% on October 12, 2026, as oil prices surged and the dollar index climbed to 102.51. Spot gold hovered at $4,165, down from the previous day’s high.
RBI’s extraordinary measures on October 10—opening a special window for state‑run oil companies and curbing forex derivative rebooking—bolstered the rupee, which fell 1.3% against the dollar and helped anchor domestic gold pricing.
Mid‑East tensions flared after a Saturday attack on Riyadh Airport killed 12 and injured 300. Saudi Arabia warned of continued missile and drone assaults, while Houthis’ aggression pushed oil volatility higher.
U.S. sentiment cooled: the University of Michigan report slipped to 46.30, its lowest since May, and the trade deficit widened to $420.8 billion, the highest since March 2025. Fed rate‑hike probability hovered near 20% after a weaker payroll report.
Hedge‑fund net‑long gold contracts fell to a 15‑week low of 114,820 lots. Analysts now expect a short‑term rally but a ceiling around $4,200 as risk premiums rise.
Traders will watch the October 19 futures close and the RBI’s policy committee meeting on October 18 for further currency moves.