Teaser: The price of gold futures fell to the lowest in over a year on Friday and silver dropped below $50/oz for the first time since last November, as wars in the Middle East and Russia-Ukraine push oil prices higher, raising inflation concerns with implications of higher interest rates. Following another tanker raid in the Strait of Hormuz, crude oil prices surged more than 2%, heightening concerns about inflation and raising predictions that U.S. Federal Reserve policy will continue to be restrictive. As consumers paid more for petrol and other products in September, U.S. inflation increased, supporting experts' predictions of a rate hike in December. The steep drop in tech stocks, with the tech-heavy Masdaq falling by about 3%, may have contributed to the slide in precious metals as well. This could have resulted in forced selling and margin calls.

Gold and silver remain vulnerable to monetary policy uncertainty following substantial liquidation triggered by technology equity losses and margin-related selling. Stronger US economic growth and elevated PCE inflation reinforced expectations of further Federal Reserve tightening, increasing the opportunity cost of holding non-yielding assets. However, easing crude prices could moderate energy driven inflation concerns and provide support through softer real yields. Friday's US employment report will be crucial in shaping December rate expectations, while manufacturing and services PMI readings could influence dollar movements. The US midterm elections and renewed diplomatic engagement with Iran introduce additional geopolitical uncertainty. Crude oil remains exposed to competing geopolitical and supply developments as renewed US-Iran diplomatic efforts raise expectations of de escalation, while threats against Middle Eastern energy infrastructure sustain supply disruption risks. Houthi claims of attacks on Saudi facilities and reports of maritime incidents near the Strait of Hormuz have heightened concerns over regional shipping security, although several incidents remain unconfirmed. Meanwhile, recovering Russian refinery operations and improving Persian Gulf export availability could ease immediate supply constraints. Planned US Strategic Petroleum Reserve replenishment may provide incremental demand support, partially offsetting recovering production. Developments surrounding the US midterm elections could influence Washington's approach towards Iran, while EIA inventory figures will clarify near-term supply conditions. US employment data and dollar movements could further affect demand expectations and speculative positioning.