Gold and silver tumble as Middle East tensions fuel inflation worries

Spot gold and silver prices fell sharply Thursday, with gold down 2.88% to $4,021.20 and silver down 5.90% to $54.44, as Middle East tensions boosted oil prices and reinforced expectations of further Federal Reserve tightening. Renewed attacks near the Strait of Hormuz drove crude higher, intensifying inflation concerns despite falling Treasury yields and a tech-stock selloff failing to spur safe-haven demand. Silver faced added pressure from worries about industrial demand and slowing economic activity. The Fed's Oct. 27-28 meeting and upcoming inflation data will test market expectations for December rate hikes, while geopolitical uncertainty in the Gulf continues to complicate the outlook for both metals.