Gold weakens as inflation fears mount, oil and gas prices jump

Energy markets also moved higher on Friday. Brent crude hit a more than five-month high, gaining 1.14 percent to $114.47 a barrel, while European natural gas reached its highest level since December 2022, rising 1.37 percent to €91.28 ($102.40) per megawatt-hour.

Crude was lifted by escalating attacks on Saudi targets and reports that the US and Israel could renew strikes on Iran after next month’s US midterm elections.

Yemen’s Houthi militia claimed responsibility for recent attacks on Saudi Arabia’s Red Sea port of Yanbu, and reports suggested Iran’s energy infrastructure could be among potential targets.

Despite regional tensions and threats to shipping through the Strait of Hormuz, Gulf crude exports have recovered to near prewar levels.

In Europe, gas climbed further as Middle Eastern liquefied natural gas (LNG) shipments stayed about 80 percent below year-earlier levels, sharpening competition between European and Asian buyers ahead of winter.

Gas storage stood at 74.62 percent of capacity on 22 October, the lowest for this time of year since records began in 2009. That leaves the region exposed to further supply disruptions and higher heating demand.

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