Gold fell below $4,000 an ounce on Friday and closed at its lowest level in three months, extending its weekly decline to 4.07%, as higher oil prices fuelled inflation concerns and strengthened expectations that the US Federal Reserve will keep rates high or raise them, Reuters reporting carried by Jawawa said. Spot gold was trading near $3,995.81 an ounce, down 0.70% late on Friday, according to market data summarised by Gold Eagle — yaani gold slipped below a level of about four thousand dollars an ounce for the first time since mid-July.

Source: Reuters via Jawawa

Oil moved the other way. Brent crude closed at $116.72 a barrel, up 3.14% on Friday and 6.24% for the week, its highest close since April 29, while December WTI closed at $103.27, up 3.82% on the day, according to closing figures checked against CME Group settlement prices and AP figures and reported in a week-in-review of TradingView data. CCTV Finance, carried by Cointime, reported the same Friday closes: Brent $116.72 and WTI $103.27.

Source: CCTV Finance via Cointime

Traders linked the oil surge to Houthi attacks across Saudi Arabia, including on energy infrastructure, and to renewed Middle East tensions around Hormuz, the reports said. Higher energy prices pushed selling prices up at the fastest pace since August 2022 in US flash PMI data, reinforcing the inflation worry.

According to the CME FedWatch Tool cited by Reuters, markets put a 92% probability on the Fed holding rates at its October 27-28 meeting, but a 78% probability of a rate rise in December. Capital Economics economist Hamad Hussain said, as quoted by Reuters, that higher oil prices could keep real interest rates elevated for longer, reducing the appeal of holding gold, which pays no yield.

For Punjab and India, the combination matters at home as well as in markets: costlier crude raises fuel, transport and import costs, while a sharp fall in gold changes the price families see for jewellery and savings purchases.