Gold Falls 0.16% to $4,054.60 as Oil Rises After Claim of Ras Tanura Targeting
Key Facts
Spot gold fell $6.36, or 0.16%, to about $4,054.60 an ounce in early U.S. trading on Wednesday, October 28, according to Kitco data. The decline came as oil prices rose after the Houthis claimed they had targeted Saudi Arabia’s Ras Tanura refinery with a ballistic missile. The Associated Press was unable to verify the claim that the refinery had been hit, while Saudi Arabia issued no comment. The move puts the precious metal between geopolitical tensions and inflation concerns: disruption to oil supplies could support defensive demand, while yields, the dollar and expectations of higher interest rates weigh on gold. Spot silver also fell $0.195, or 0.40%, to about $54.202 an ounce.
Saudi authorities said air defenses intercepted and destroyed three ballistic missiles launched by the Houthis toward the Eastern Province on Tuesday, October 27. That remains separate from the claim that Ras Tanura was targeted, which could not be verified, and does not establish that the refinery was hit or its operations disrupted. The refinery has total distillation capacity of 550,000 barrels per day, according to Aramco’s 2025 investor bulletin. That scale makes the facility an important part of Saudi Arabia’s oil infrastructure and gives any concerns about its safety weight in energy-market monitoring. But available sources do not report damage or a production stoppage.
Kitco reported that overnight trading indicators put West Texas Intermediate near $101.37 a barrel and Brent near $115.59. In early trading reported by Reuters at 0140 GMT, Brent rose 1.3% to $115.36, while West Texas Intermediate gained 1.22% to $101.12. EL7 data showed the October 28 close at $115.32 for Brent and $101.93 for West Texas Intermediate. These figures reflect different trading snapshots during the day, not one fixed price for crude. Prices were recovering after falling about $2 on Tuesday, when Middle East talks eased supply concerns, according to Reuters and Kitco.
Kitco attributed gold’s limited ability to rise to higher yields, a stronger dollar and continued expectations of Federal Reserve tightening. It said traders had priced in a roughly 84% probability of at least one more increase by December, despite broadly expecting rates to remain unchanged within 3.75% to 4.00% in Wednesday’s decision. Investors were looking for signals from the meeting on the next move and the path of inflation, according to the Associated Press. Federal Reserve Vice Chair Philip Jefferson said the rise in long-term interest rates in markets meant policymakers should take time to form their judgment. He added: "My colleagues and I will need to form our own judgment, and that may take longer."
The focus on interest rates comes as an Associated Press report said U.S. inflation exceeded most economists’ expectations for two consecutive months. That heightened concern that rising fuel prices could push up costs across the economy, as investors monitor oil’s impact on price expectations. Traders are also watching whether elevated yields and a strong dollar will continue to limit gold’s appeal despite tensions surrounding energy supplies. Kitco links these factors to the precious metal’s stalled recovery, without making the attack claim alone an explanation for its move. Oil and gold movements remain tied to trading developments and expected monetary-policy signals.
The U.S. agenda on Thursday, October 29, includes the preliminary third-quarter gross domestic product estimate, September personal consumption expenditures inflation data and weekly jobless claims, all scheduled for 8:30 a.m. Eastern Time, according to Kitco. In Saudi Arabia, the Forex News calendar listed the release of third-quarter GDP growth on November 1, with a forecast contraction of 5.8% and a previous figure of 4.7% for the second quarter. The official figure available for the second quarter is a 4.7% year-on-year contraction in real GDP, according to Saudi Arabia’s Ministry of Economy and Planning. Over the same period, oil activity contracted 24.8%, while non-oil activity grew 0.9%. The 5.8% figure is therefore a calendar forecast for the third quarter, not a published reading, while 4.7% represents the second-quarter result.