Gold Prices Drop as Houthi Attacks Drive Oil Higher
Gold prices declined on October 22 as Houthi attacks in Saudi Arabia pushed up oil prices and increased expectations for sustained high interest rates.
Spot gold prices fell 1.1% to $4,094.90 per ounce on October 22, reaching the lowest level since October 14. The decline followed a rally in oil prices triggered by Houthi attacks in Saudi Arabia, which sparked inflation concerns and reinforced market expectations that interest rates will remain elevated for a longer period.
In response to the security situation in Saudi Arabia, the Federal government of the United States ordered some diplomats and their family members to leave the Kingdom. Investors are now focusing on the Federal Reserve's policy meeting scheduled for October 27-28 and upcoming Personal Consumption Expenditures data to gauge the future trajectory of interest rates.
The downward trend extended to domestic markets in Pakistan, where gold prices dropped by Rs900 per tola to Rs434,536. During the same period, the Pakistani rupee saw a slight appreciation against the US dollar, closing at Rs276.86.
