Gold Poised for Sharp Weekly Loss as Hormuz Tensions Push Crude to Five-Month Highs

Spot gold fell to around $4,026.56 an ounce on Friday, down 2.4%, while silver dropped 6.4% to $53.801. Both metals head for weekly losses exceeding 3.5% as oil prices rise amid Middle East tensions, reinforcing expectations of tight Fed policy.

Data showed consumer prices up 0.6% monthly and 3.7% yearly, with producer prices rising 1.3% and 6.3%. Futures indicate the Fed will hold rates at its late October meeting, yet markets price in a 78% chance of a December hike. The 10-year Treasury yield hovers near 5%.

Hormuz Strait tensions lifted Brent toward $115 per barrel and WTI above $100, five-month highs, after shipping attacks. This mix of geopolitical risks and inflation fears has curbed gold's safe-haven appeal, equities declined, and the dollar strengthened.