Gold fell below $4,100 an ounce and silver lost more than 2.4% as oil prices rose above $111 a barrel. Asian stocks also slid, with Japan's Nikkei and South Korea's KOSPI both lower. Rising energy costs are fueling fears of higher inflation and U.S. interest rates.
Gold fell below $4,100 an ounce while silver lost more than 2.4%, as a surge in crude oil rattled multiple markets. Asian equities turned lower at the same time.
Oil above $111 drives the sell-off
The main trigger was the jump in energy prices. Drone and missile strikes by Yemen's Houthi group on Saudi oil fields pushed Brent and WTI crude above $111 a barrel.
Higher oil prices raise fuel and transport costs, which adds to fears of rising inflation. This could keep interest rates high for longer, so investors are selling gold and silver despite their usual role as safe-haven assets.
Gold slips to $4,087 on Fed expectations
Spot gold dropped more than 1% to around $4,087 an ounce, and silver fell to about $56.20.
Markets are now pricing in a possible 25-basis-point rate hike in December, while CME FedWatch data points to no change at the October meeting. Higher rates and a stronger U.S. dollar can pressure precious metals because they do not pay interest.
Asian stocks slide, led by Japan
The sell-off spread to Asian shares, especially technology and semiconductor stocks. Japan's Nikkei 225 fell 2.3% to around 62942, and the one-day market loss reached ¥17.8 trillion.
South Korea's KOSPI dropped 2.7% to around 5,735. Hong Kong's Hang Seng Tech Index slid around 4%, while the Hang Seng Index lost nearly 3%.
Crypto also lost ground. Bitcoin fell below $83,000 after moving above $84,000, and total crypto market value slipped 0.2% to $2.87 trillion.
Source: Coinpedia Fintech News
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