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 since October 2025, according to Reuters. Silver fell 6% to $49 an ounce after breaking below $50 for the first time in 11 months. EL7 data showed gold closed at $3,913, compared with $4,031.4 in the previous session. Silver also closed at $49.3, versus $52.38 on October 29. The decline came amid falling technology stocks and concerns that returns on AI spending may not meet expectations.
Reuters linked the metals’ decline to weakness in technology stocks, as investors worried that heavy spending on AI may not generate sufficient returns. Commerzbank analysts said the drop in technology stocks may have prompted some investors to sell safe-haven assets, including gold, to cover losses or meet margin calls. This means a metal typically bought as a hedge may come under selling pressure when investors need liquidity or face additional demands on their positions. The report did not attribute that day’s decline to expectations of higher interest rates. Gold and silver came under pressure in a session that saw a broad decline in precious metals.
Silver, platinum and palladium fell between 7% and 9% in the week ended October 30, compared with a 2% decline in gold, according to Reuters. The performance pushed the relative strength index for white metals into oversold territory for the first time in three years. Silver’s daily decline was steeper than gold’s, as it lost 6% to reach $49 an ounce. By breaking below $50, silver fell under that level for the first time in 11 months. The figures reflect the broadening weekly losses in white metals, alongside yellow gold’s drop to a one-year low.
Over recent months, gold has fallen 30% from its record of $5,595 an ounce set in January, as bets on interest rates staying higher for longer weighed on prices. Reuters also cited weak demand in Asia among the factors associated with the extended decline from the peak. By contrast, analysts quoted in the report said central-bank demand tends to strengthen when gold falls below $4,000 an ounce. The price’s drop below that level comes as official buying data highlight continued demand from some institutions. The People’s Bank of China said it added 23 tonnes to its reserves in September, its largest monthly increase since October 2023, and raised its purchases in the third quarter to 63 tonnes, according to the World Gold Council.
The price relationship between the two metals shifted as silver’s decline accelerated: buying one ounce of gold now requires 79 ounces of silver, the highest ratio in 11 months. The ratio was 46 ounces in January, when silver set a record at $122 an ounce, according to Reuters. In India, the World Gold Council said the discount in local prices narrowed from an average of $66 an ounce in September to $8 on October 16. The council said the festive and wedding season provides a favorable backdrop for near-term demand, and that lower prices support jewelry spending, while higher prices may limit growth in volumes. These seasonal factors place consumer demand in India alongside central-bank purchases among the demand indicators watched by the gold market.