Gold slides to $4,087 as oil-driven inflation worries weigh

Gold fell further on Thursday, with spot bullion at $4,087.18 an ounce, down 0.81% at 10:26 am PST, Mettis Global reported. Rising crude prices have revived concerns that inflation could persist, reinforcing expectations that borrowing costs will remain elevated for longer.

Oil advanced after Houthi attacks in Saudi Arabia prompted Washington to order a number of its diplomats and their relatives to depart the country. Traders are looking to the Federal Reserve’s October 27-28 meeting and upcoming PCE figures for clues: CME FedWatch indicates a 16% chance of a rate rise in October and a 90% likelihood in December, while the Fed targets 2% inflation. Silver declined 2.6% to $56.44 an ounce, platinum slipped 2.1% to $1,594.25, and palladium lost 2.6% to $1,059.05.