Gold drops below $4,000, silver tumbles as Hormuz attack lifts oil prices

Spot gold and silver prices fell in early U.S. trading Friday, as attacks on commercial shipping in the Strait of Hormuz pushed crude oil prices higher.

Gold slipped below $4,000, while silver reached its lowest levels of the year, with both metals under continued selling pressure.

The U.S. employment cost index rose 0.8% in the third quarter, showing some moderation in labor-related inflation, though wage growth remains elevated.

The Federal Reserve left interest rates unchanged at 3.75% to 4.00%, with officials divided on whether to raise rates in December.

Crude oil prices surged following the latest attack on a tanker in the Strait of Hormuz, with Brent and WTI crude futures climbing sharply.

Market expectations for a December rate hike increased, with futures markets assigning approximately an 83% probability to a rate increase.

Global equity markets weakened before the U.S. open, with technology shares pressured by disappointing earnings and concerns about artificial intelligence investment.

The U.S. dollar remained comparatively firm, while gold and silver continued to fall, influenced by inflation concerns and interest rate expectations.