Silver and gold hit multi-month lows as Middle East tensions and Fed rate hike bets spark selloff

Silver prices crashed ₹8,593 per kilogram to a seven-month low of ₹2,00,575 on MCX, while gold hit a two-month low, driven by rising Middle East tensions and expectations of further US Federal Reserve rate hikes. The selloff coincided with a 3.3% rise in Brent crude to $112.38 a barrel, as attacks in Saudi Arabia threatened energy flows. Higher oil prices fuel inflation, strengthening the case for tighter Fed monetary policy, with traders pricing an 86% likelihood of a December rate increase. Gold fell ₹2,300 per 10 grams to ₹1,43,600, with both metals down 3.3% and 10% this month. US inflation data came in hotter than expected, while Fed Chair Kevin Warsh’s remarks offered no fresh clues ahead of the October 27–28 meeting.