Gold traded near $4,160 an ounce on Tuesday after falling 0.5% on Monday, as attacks on energy sites in Saudi Arabia lifted oil prices and the dollar. Traders fear higher energy costs will keep inflation and interest rates high.
At a glance
- Silver slipped 0.5% to $59.93 an ounce, and platinum and palladium also fell.
- Brent crude settled at $106.65 a barrel on Monday, its highest since September 15.
- The US dollar index was near its highest since April last year.
Background
Gold earns no interest, so it tends to fall when higher energy prices raise inflation fears and push expectations of interest rate hikes up. A stronger dollar also makes gold more expensive for buyers using other currencies.
What happened
Gold traded near $4,160 an ounce early on Tuesday, October 13, after ending Monday's session 0.5% lower, Moneycontrol reported. It had touched its highest since October 2 on Monday before giving up those gains.
Silver slipped 0.5% to $59.93 an ounce, while platinum and palladium also declined.
Why it fell
The spreading conflict in the Middle East stoked fears that further disruption to energy supplies could keep inflation high and raise the chance of more interest rate hikes. Traders weighed the risk from attacks on Saudi Arabia.
Brent crude settled at $106.65 a barrel on Monday, its highest since September 15, before easing 0.57% to $106.04 on Tuesday. The US dollar index was at 102.56, hovering near its highest since April last year.
What comes next
Traders are watching US consumer price data due on Wednesday, followed by producer prices and retail sales on Thursday. Hotter inflation would strengthen the case for further Federal Reserve tightening and add to pressure on gold.
Our read
Outlook: bearish. Higher oil prices and a strong dollar keep inflation and rate-hike worries alive, which weighs on gold.
What to watch
- US consumer price index on Wednesday.
- Further attacks on energy infrastructure in the Middle East.
- The dollar, near its highest since April last year.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2026-10-12: Gold touches its highest since October 2, then closes 0.5% lower.
- 2026-10-13: Gold trades near $4,160 an ounce.
- 2026-10-14: US consumer price data is due.
Inflation
Higher oil prices feed inflation fears and expectations of further rate hikes.
Currency Impact
The dollar index near 102.56 makes gold more expensive for other buyers.
Geopolitical Risks
Attacks on energy infrastructure in the Middle East are pushing oil prices up.
What could lift prices
- Gold touched its highest since October 2 on Monday before falling back.
What could weigh on prices
- Higher oil prices raise the chance of further rate hikes.
- The dollar is near its highest since April last year.
Country impact
| Country | Impact | Reason |
|---|---|---|
| United States | High | Its inflation data and Fed policy are the next big test for gold. |
| Saudi Arabia | Medium | Attacks on its energy sites lifted oil prices. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Gold Mining | Negative | Lower gold prices reduce miners' margins. |
| Jewellery | Positive | Softer prices help jewellery buyers ahead of the festive season. |
Who gains, who loses
- Jewellery buyers: Gold is cheaper than earlier this month.
- Gold investors: Prices fell back from Monday's two-week high.
Other ways this could play out
- If Wednesday's inflation data is softer, gold could recover.
- If inflation is hotter and oil keeps rising, gold could slip further.
Price risks
- Escalation in the Middle East could move gold sharply in either direction.
- Fed rate expectations are the biggest near-term driver.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
United States
Saudi Arabia