Saudi Airport Attack Sparks Global Gold Price Volatility

Gold prices may rise in the short-term but the upside is likely to be capped. Says Praveen Singh, Head Currencies and Commodities, Mirae Asset ShareKhan. The attack on Saudi's Riyadh Airport on Saturday left 12 people dead, including an American, and over 300 injured.

Saudi, Arabia shared. it was dealing with missiles and drone attacks Monday also. The US President, Trump said.

he is weighing joining war against the Houthis.

At the time of writing this article on the night of October 12. Spot gold was changing hands at $4165, down nearly 0.7% for the day. Losses in domestic gold prices were more pronounced.

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Down 1.3%, due to strong appreciation in the INR on significant steps taken by the RBI to support the ailing currency in the weekend.

As tensions between the Houthi rebels and Yemen's internationally acknowledged government, backed by Saudi Arabia, escalate, regional geopolitics are becoming increasingly entangled. The recent spate of attacks on Riyadh has disrupted air travel, impacting the World Petroleum Congress. This has seen several high-ranking oil executives pull out of the in-person event.

Despite this, the conference is proceeding as scheduled. With the Future Investment Initiative – the flagship investment conference of Crown Prince Mohammed bin Salman – set to take place from October 26 to 29. Attention is now shifting to the event, which promises to be a key role in the region's economic landscape.

Trump’s announcement of an energy ceasefire between Russia and Ukraine does not seem to be holding. Trump, through a social media post claimed that Russia has agreed to sell US diesel to the tune of 4.8 million tons in the coming months.

Russia has not specified either dates or volumes. The initial tranche of 5,00,000 tons (125,000 bpd if spread across November) will be less than 10% of the diesel loss of 1.6 mbpd.

Friday’s US data showed that University of Michigan sentiment fell from 48.1 in September to 46.30 (forecast 47.60). Lowest since May, in its October preliminary reading. One-year inflation expectations rose from 4.6% to 4.7%, while five-ten-year expectations edged higher from 3.4% to 3.5%.

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Current conditions slumped sharply from 50.90 to 44.70 (forecast 50.10), a record low.

The Indian Rupee surged on Monday as the Reserve Bank of India (RBI) implemented a series of unconventional measures to bolster the country's struggling currency. The RBI has introduced a dedicated window to cater to state-run oil companies' needs.

At the same time, it mandating banks to hold a significant portion of their cash reserves with the central bank for select foreign exchange transactions. The RBI has also imposed stricter regulations. Limiting dealers' ability to re-book cancelled foreign exchange derivatives involving the INR and slashing the maximum permissible limit for such transactions to $5 million, down from $100 million.

The US Dollar Index edged higher Monday as crude oil prices rose. The Index, at the time of writing, was hovering around 102.51, up nearly 0.25% for the day, as it approached the cycle high of 102.53, highest since April 10, 2025.