Business · Markets · 2 hrs ago
Gold Slips as Middle East Tensions and Fed Rate Outlook Weigh
Gold prices edged lower, with bullion trading around $4,120 an ounce, as traders weighed Middle East tensions and US interest-rate expectations.
A US order for non-emergency government staff and their families to leave Saudi Arabia, along with a drone strike that killed two people at a Saudi Aramco field, raised concern about an escalation.
The tensions pushed oil higher and revived inflation concerns.
Treasury yields also rose, making gold less attractive because it pays no interest.
Gold has lost about a fifth since the US-Iran conflict began in late February, as higher energy costs fueled inflation.
The Federal Reserve is expected to keep rates steady next week, and recent signs of a softer US housing market have not changed that outlook.
Traders broadly expect a rate increase in December, as inflation remains above the Fed’s 2% target and energy costs add pressure.
Gold fell as renewed Middle East hostilities raised inflation concerns and traders assessed the Federal Reserve’s interest-rate outlook.
Spot gold was down 0.4% at $4,123.39 an ounce at 7:36 a.m. in Singapore.
Oil rose after the US ordered non-emergency government employees and their families to leave Saudi Arabia and a drone strike on a Saudi Aramco field killed two people.
Higher energy costs and rising Treasury yields added pressure to gold, which does not pay interest.
Traders largely expected the Fed to keep rates steady at its next meeting, while inflation remained above its 2% target.
- Who
- Gold traders and the Federal Reserve. Traders were assessing Middle East developments and the Fed’s rate outlook.
- What
- Gold prices fell as inflation concerns and the prospect of elevated borrowing costs weighed on bullion.
- When
- October 22, 2026. Spot gold was quoted at 7:36 a.m. in Singapore.
- Where
- Gold was trading in Singapore; the Middle East hostilities mentioned were in Saudi Arabia.
- Why
- The hostilities raised inflation risks and energy costs, while higher yields made non-interest-bearing gold less attractive. Traders also weighed the Fed’s expected rate decisions.
This story does not have two clearly opposing sides.
The US-Iran conflict erupted, pushing energy prices higher and fueling inflation.
Gold rose 0.4% in the previous session, ending three days of declines.
Spot gold fell 0.4% to $4,123.39 an ounce at 7:36 a.m. in Singapore.
- Spot gold
- $4,123.39 an ounce, down 0.4% at 7:36 a.m. in Singapore
- Previous session
- Gold rose 0.4%, snapping three days of declines
- Silver
- $57.54 an ounce, down 0.7%
- US inflation target
- 2%
- Potential Fed rate hike
- Probability of a quarter-point hike was less than one-in-six
- Saudi Aramco field
- A drone strike killed two people