Gold drops as oil rise fuels inflation worries ahead of US midterms
Spot gold fell about 1% slipping to around $3,933 as higher oil prices revived inflation concerns ahead of the United States midterm elections, Reuters reported. The decline followed a volatile two-week period in which the metal traded near the $4,000 level. Earlier in the week, FXStreet noted that oil price swings and US-Iran tensions had pushed gold below $4,000.
Kitco reported that a tanker attack in the Strait of Hormuz lifted crude prices and sent gold down to $3,959, while Federal Reserve-related rate-hike expectations repeatedly moved the price up and down. Throughout October, analysts warned that a break below the $3,900 support could trigger further losses.