Gold Plunges 2.2% as Iran Strike Reports Stoke Energy Inflation, Rate-Hike Fears

Front-month Comex gold for December delivery fell $92.40, or 2.23%, to $4,057.60 per troy ounce on Thursday, as energy-linked inflation concerns overshadowed the metal's safe-haven appeal. December silver tumbled $2.81, or 4.87%, to $54.90 an ounce. The selloff followed a New York Times report that the U.S. and Israel are preparing a short but intense military operation against Iran after the first week of November midterm elections, potentially targeting energy infrastructure, nuclear facilities and missile arsenals. The report revived fears of near-term Federal Reserve rate hikes from resulting inflationary pressures, with markets pricing roughly 95% odds of a hold at the October 28 meeting. Crude oil rallied on the prospect of deeper Middle East escalation and prolonged supply disruption. Separately, U.S. jobless claims for the week ending October 17 fell 6,000 to 194,000, below the 200,000 estimate, while continuing claims rose to 1,728,000.