Gold prices fell for a third consecutive session on Tuesday as elevated crude oil prices raised concerns about persistent US inflation and the possibility that the Federal Reserve could keep interest rates higher for longer, Reuters-linked market data showed: spot gold declined 0.4% to $4,123.32 per ounce by 04:46 ET, while gold futures dropped 0.5% to $4,141.09 an ounce, following a 0.6% fall in the previous session.

The link, as market analysts described it: higher energy costs can add to inflationary pressure and complicate the outlook for interest rates; because gold does not pay interest, expectations of tighter monetary policy can make interest-bearing assets relatively more attractive, said Ricardo Evangelista, chief executive of ActivTrades, in comments reported by Reuters — an attributed market interpretation, not proof of causation. Traders were watching the Federal Reserve's October 27–28 meeting and the upcoming US Personal Consumption Expenditures price index, with CME FedWatch pricing cited by Reuters showing around an 83% chance of rates being held at the October meeting and about a 94% chance of a December rate increase — time-specific market expectations, not official Fed forecasts.

On the energy side, Brent crude futures rose to $111.75 a barrel, the highest in five months, as traders priced in a geopolitical risk premium from Houthi claims of attacks on Saudi infrastructure and reports of vessel attacks in the Gulf: Yemen's Iran-aligned Houthis said they launched attacks on Saudi energy, airport and military targets, including an Aramco site in Yanbu, the Shaybah oilfield, Riyadh's King Khalid International Airport and Abha airport — claims Saudi authorities did not immediately confirm and Reuters could not independently verify; shipping intelligence firm Kpler said at least 18 vessels had reportedly been attacked over the previous two weeks.

Oil later pared the gains: Brent settled down 76 cents at $108.79 after touching the intraday high of $111.99, as traders weighed a meeting between Iran's President Masoud Pezeshkian and Pakistan's army chief Field Marshal Asim Munir in Tehran on mediation efforts, Iran's Nournews reported — Pakistan's mediation produced an interim peace agreement in June that quickly faltered, and a previous Geopolitics story on this desk covered Munir's Tehran visit.

For readers in Punjab and the diaspora, the twin move matters twice: lakhs of Punjabi and Indian workers live in the Gulf, where oil shocks hit flights, fuel costs and remittances directly, while gold — a staple of household savings and festival buying — sits near historic highs even after the three-day slide.

Sources: Reuters via market reports; Federal Reserve calendar; CME FedWatch market pricing; ship-tracker Kpler; Nournews.