Gold held near $4,300 an ounce as a Saudi pipeline shutdown raised oil-supply risks and lifted bets that the Federal Reserve will raise interest rates. At 22:06 ET, spot gold was up 0.2% at $4,306.86, after falling more than 1% on Monday to a five-week low. Gold futures slipped marginally to $4,346.65.
The move followed Saudi Arabia's decision to close its East-West pipeline after attacks the previous week. The pipeline had been carrying crude around disruption in the Strait of Hormuz, and its shutdown puts millions of barrels a day at risk at a time when markets are seeking additional supplies. Saudi Arabia has not said how long the closure will last or how quickly shipments through the Strait of Hormuz can be increased. Brent crude was up 1.19%.
Rising energy prices have intensified inflation concerns and pushed markets to price about a 92% probability of a Fed rate increase this week. Higher borrowing costs tend to weigh on gold, which pays no interest. The 10-year U.S. Treasury yield briefly touched 5% on Monday, the first time in almost three years, while the dollar index rose to 99.60.
Gold remains down more than 3% in September after trading above $4,600 an ounce in late August. The metal had earlier established a floor near $4,000 during a correction. Silver gained 0.3% to $63.42 an ounce, while platinum was little changed at $1,764.36.
OCBC sees gold reaching $4,600 an ounce by December 2026 and silver at $69.70. Chez Anbu, head of wealth advisory at OCBC, said gold's strong rebound in August reversed the softer tone seen earlier as the macroeconomic backdrop became more supportive.
