Gold Breaks Support as Oil Rebound Adds Inflation Pressure

Spot gold eased to around 4265.30 dollars an ounce, down 0.48 percent, while silver slipped to 63.470 dollars with a 1.34 percent decline. Rising oil prices, elevated Treasury yields and firmer Fed rate-hike bets outweighed safe-haven flows tied to US-Iran tensions.

September flash PMI data signaled the strongest US private-sector growth in more than five years, and weekly jobless claims fell to 197,000. Rate futures now price in roughly a 70 percent chance of a 25-basis-point October hike, with the dollar index near 101.05 and the 10-year yield near 5.1 percent.

Brent crude held near 104.71 dollars and WTI near 93.53 amid Strait of Hormuz risks. Equity futures declined, while gold faces resistance at 4312-4319 and support at 4235.