Gold falls 3.1% to lowest since October 2025; silver breaks below $50
Key Facts
Spot gold fell 3.1% to $3,897.09 an ounce at 11:47 a.m. Eastern Time on October 30, its lowest level since October 2025, according to Reuters. The decline came alongside a sharp drop in technology stocks, amid concerns that investments in artificial intelligence are not generating sufficient returns. Commerzbank analysts said the stock slide “may have triggered forced selling of safe-haven assets, such as gold, and margin calls.” In EL7 closing data, the GCUSD gold contract ended the session at $3,913, compared with $4,031.4 on October 29. These prices reflect two different points in the session: Reuters reported the spot price during trading, while EL7’s data represent the contract’s close.
Silver fell more sharply, dropping 6% to $49 an ounce and breaking below $50 for the first time in 11 months, according to Reuters. EL7 data showed the SIUSD silver contract closing at $49.3 on October 30, versus $52.38 in the previous session. The move in the white metals showed the sell-off spreading beyond gold: platinum fell 4% to $1,434 an ounce, its lowest level in 13 months. Palladium also declined 3% to $977, its lowest level in 17 months. Reuters linked pressure on both metals to demand concerns in the automotive sector.
The metals’ losses came on a day when technology stocks fell sharply, after results from major companies showed cash being drained by spending on artificial intelligence development. Intel shares fell 28%, while Amazon shares declined 1.9%, according to Reuters. Intel said demand for personal computers had slowed and that the slowdown could continue into the following year. Portfolio manager Joe Tigay described the shift in investor sentiment, saying the AI trade “is moving from hopes and dreams to show us the results.”
For the week, silver, platinum and palladium fell between 7% and 9%, compared with a 2% decline in gold, according to Reuters. The drop pushed the relative strength index for the three metals into oversold territory for the first time in three years. Gold had lost 30% of its value since reaching a record high of $5,595 an ounce in January. Reuters attributed the decline to bets that interest rates would stay higher for longer, along with weaker demand in Asia. By contrast, analysts said central-bank demand for gold tends to improve when prices fall below $4,000 an ounce.
The gold-to-silver comparison shows the widening gap between the metals’ performance since their peaks this year. The ratio rose to 79 ounces of silver needed to buy one ounce of gold, its highest in 11 months, compared with 46 ounces in January, when silver reached a peak of $122 an ounce. Metals Focus said the ratio averaged 82 from 2020 to 2025. The ratio indicates how much silver is needed to match the value of an ounce of gold, and analysts have said silver may remain vulnerable to further declines relative to gold. HSBC also said industrial and jewelry demand for silver were falling, and forecast an average price of $64 an ounce in 2027.
Pressure on metals coincided with U.S. indicators that kept inflation and interest rates in focus for markets. The personal consumption expenditures price index rose 0.5% in September, its biggest increase since March, according to Bloomberg. On October 28, the Federal Reserve kept its target range for interest rates at 3.75% to 4% and said inflation remained elevated. Two members voted to raise the range by a quarter percentage point, dissenting from the decision. Meanwhile, a government estimate showed the U.S. economy grew at an annual rate of 3.4% in the third quarter, compared with 2.2% in the second quarter.
In other markets on October 30, the yield on 10-year U.S. Treasury notes fell to 4.94% from 4.98% late Thursday, while Brent crude rose 3% to $114.11 a barrel, according to the Associated Press. The U.S. Bureau of Economic Analysis scheduled the release of its October personal income and outlays report for November 25, 2026, at 8:30 a.m. Eastern Time. The release includes the personal consumption expenditures price index, which markets track to assess the inflation outlook. The report is due after September’s reading showed an increase of 0.5%.