Gold Plunges 3.3% to $3,900 as Oil Surge, U.S.-Iran Tensions Fuel Rate-Hike Bets

Gold prices fell sharply on Friday, extending losses from the two prior sessions as rising crude oil prices stoked inflation fears and reinforced expectations of prolonged global monetary tightening. Front-month Comex gold for December delivery dropped $131.30, or 3.26%, to $3,900.10 per troy ounce. December silver plunged $3.170, or 6.05%, to $49.210 per troy ounce. WTI crude for December delivery traded at $104.85, up $2.85, or 2.79%, amid the stalled U.S.-Iran peace process and supply concerns. Iran's Revolutionary Guards said four tankers struck mines in the Strait of Hormuz, while Iran-backed Houthi militants claimed attacks on Saudi airports and oil facilities. Traders priced a 74.40% chance of a Fed rate hike at the December meeting, per CME FedWatch, after the central bank held rates at 3.75%-4.00% on Wednesday. The ECB also held steady but signaled tightening may continue. Analysts also cited forced liquidations tied to equity selloffs.