Gold Slides Near $4,135 as Oil Surge Stokes Inflation Fears and Clouds Fed Rate Outlook

Gold slipped to around $4,135 an ounce, extending a decline that follows a 0.6% drop in the prior session. The dip came as oil prices lingered near a five‑month high after Iran warned it must assert control over the Strait of Hormuz, while U.S. lawmakers opposed President Donald Trump's diesel export deal with Russia. Traders are weighing the Federal Reserve’s next move; former Fed governor Kevin Warsh hinted on the eve of a communications blackout that rates could stay on hold, pulling the odds of a quarter‑point hike below 20% from about two‑thirds a month earlier. Yet market participants still assign a 90% chance of at least one more rate rise before year‑end, a scenario that pressures gold because the metal yields no interest. Despite a stronger dollar and high bond yields, gold has held above $4,100 throughout October after a more than 6% fall in September, and it is down roughly 20% since the U.S.–Iran clash began in late February. Spot gold edged down 0.1% to $4,134.91 per ounce at 7:47 a.m. Singapore time, while silver fell 0.3% to $56.93 an ounce and both platinum and palladium slipped modestly. The Bloomberg Dollar Spot Index was essentially flat after a 0.1% gain the day before. ## Context Gold typically moves opposite to real‑interest‑rate expectations; higher borrowing costs and inflation worries reduce its appeal as a safe‑haven store of value.