Gold and silver slide as Hormuz attacks lift crude and Fed tightening bets

Gold and silver prices fell sharply Thursday despite lower Treasury yields, as renewed attacks on shipping in the Strait of Hormuz pushed crude oil higher and reinforced inflation concerns and expectations for further Federal Reserve tightening. Spot gold dropped 1.29% to $4,086.90 an ounce, while silver fell 3.57% to $55.79. Weekly initial jobless claims declined by 6,000 to 194,000 in the week ended Oct. 17, below expectations of about 200,000, signaling labor-market resilience. Traders see a high probability of no Fed rate change at the Oct. 27-28 meeting, but an 86% likelihood of a 25-basis-point increase in December. Brent crude rose above $112 a barrel, its highest since May, while WTI approached $100. The Fed is in a communications blackout, with upcoming data on manufacturing, consumer sentiment, and inflation set to test December tightening expectations.