Gold Falls 1.3% to Two-Week Low as Brent Tops $112 on Saudi Supply Fears

Spot gold tumbled 1.3% to $4,088.97 an ounce Thursday, its lowest in more than two weeks, while U.S. gold futures fell 1.1% to $4,104.50. Brent crude topped $112 a barrel after a drone attack on Saudi Aramco's Shaybah oil field and an attack on King Fahd International Airport in Dammam heightened energy supply concerns. The State Department ordered non-emergency U.S. government staff and family members to leave Saudi Arabia as Houthi attacks in Yemen intensify. The New York Times reported that the U.S. and Israel have drawn up plans for possible new strikes on Iran after the U.S. midterm elections, potentially targeting nuclear facilities, missile and drone capabilities, and energy infrastructure. Investors also weighed France's debt, with its 10-year bond yield at 5.089%, above comparable U.S. Treasuries for the first time since 2013. The dollar index was little changed ahead of central bank meetings in Japan, Canada, the U.S. and Europe next week. The Fed decides rates on October 28, with hike odds at 16% for next week.