Gold falls below $4,000 as oil-driven rate fears hit demand

Gold prices fell below $4,000 per ounce for the first time since late July, trading at $3,987 in London on Friday morning, marking a three-month low amid market uncertainty. Rising oil prices, triggered by a Houthi attack on a Saudi Aramco oil field, fueled fears of interest rate hikes, which typically dampen gold demand since the metal yields no interest. Analysts noted that risk reduction and inflation concerns outweighed relief from falling bond yields. Gold's weakness suggests it is failing as a safe haven, as stock market losses increase investor liquidity needs for cash hoarding or broker margin calls, undermining its traditional defensive role.