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Gold Falls Below $4,300 as Fed Hike Odds Surge After Saudi Pipeline Shutdown

A Saudi east–west pipeline outage sent oil higher and pushed inflation expectations that lifted US yields and strengthened the dollar.

Overview

  • Global spot gold dropped to roughly $4,270–$4,310 per ounce, marking a one‑month low as traders sharply raised bets that the Federal Reserve will raise rates.
  • Markets now price about a 92% chance of a Fed rate increase, and the US 10‑year Treasury yield has moved above 5%, reducing demand for non‑yielding gold.
  • The price move followed Saudi Arabia closing its 1,200 km east–west pipeline after Houthi attacks, a shutdown that could remove roughly 2.6–4 million barrels per day from supply.
  • Domestic bullion markets tracked the international slide with Pakistan, India and Vietnam reporting notable falls in tola/gram and MCX rates, while silver was mostly range‑bound or slipped modestly.
  • Investors should watch the Fed decision and oil repairs for next steps because higher yields and a firmer dollar could keep downward pressure on gold even if safe‑haven demand persists.