Gold Falls 3.5% to $3,880.97, Silver Breaks Below $50

Key Facts

Spot gold fell 3.5% to $3,880.97 an ounce at 2:13 p.m. Eastern time on Oct. 30, its lowest level since October 2025, according to Reuters. Silver dropped 6.5% to $49 an ounce, breaking below $50 for the first time in 11 months. The metals came under pressure as bets grew that U.S. interest rates would remain high, reducing the appeal of gold and silver, which yield no income. The decline coincided with a sharp fall in technology stocks, in a session marked by volatility that prompted investors to reduce risk. Silver’s decline stands out in particular because its weakness is also linked to concerns about industrial demand, alongside broader market factors.

The Federal Reserve’s decision on Oct. 28 was to hold interest rates, not raise them; the committee kept its target range at 3.75% to 4% in a 10-to-2 vote. The two dissenting members favored a quarter-percentage-point increase in the range, signaling disagreement within the committee over the appropriate path for monetary policy. The Fed said inflation remained elevated and that the accumulation of more information would help it determine the appropriate stance to return inflation to its 2% target in a timely manner. Metals therefore came under pressure from market expectations for the next rate move, not from an increase approved at the October meeting. September data showed the personal consumption expenditures price index accelerated to 3.6% year over year, from 3.4% in August, while the core index rose to 3.1% from 3.0%. The headline index also rose 0.5% from August, while other data attributed the acceleration in inflation to higher gasoline prices and other goods.

Peter Grant, vice president and senior metals strategist at Zaner Metals, said inflation concerns were prompting several central banks to lean toward tighter policy, adding that "the higher-for-longer rate outlook is prevailing, and that is weighing on precious metals." In the United States, inflation and energy-cost data supported expectations that rates would remain high, while oil was heading for a fourth consecutive monthly gain in October. Higher energy prices add to pressure on gold by reinforcing expectations that rates will stay elevated and making non-yielding assets less attractive. St. Louis Fed President Alberto Musalem said tighter monetary policy would be necessary soon and that inflation remained above the 2% target. Bullion was heading for a second consecutive monthly decline, down 5.9% in October through the time of the report, according to Reuters.

Alongside rate expectations, the decline in technology stocks added pressure on metals during the Oct. 30 session. The Nasdaq Composite fell 2.9% amid concerns that spending on artificial intelligence had pushed valuations too high. Commerzbank analysts said the sharp drop in technology shares may have triggered forced selling of safe-haven assets such as gold, as well as margin calls. The analysts did not conclude that this had happened, but said they expected precious metals to recover. That possibility differs from saying investors liquidated specific long positions; the explanation focused on potential forced selling and margin-related pressures.

Physical gold demand remained weak in major Asian markets during the week, according to Reuters. Buyers in India postponed purchases while waiting for the possibility of further price declines, while demand remained subdued in China, the largest gold consumer. Buyers’ wait-and-see stance in India meant the decline did not quickly bring them back into the market, while Chinese demand did not provide enough support for prices during the week. Silver, meanwhile, faces additional sensitivity tied to its industrial uses and jewelry demand. Reuters said silver was increasingly being viewed as a commodity tied to growth in industrial activity, while HSBC reported a decline in industrial and jewelry demand for the metal.

Based on daily closing data from L7, gold was at $3,875.645 on Oct. 30, compared with $4,020.565 the previous day. Silver closed at $48.902, versus $52.002 on Oct. 29. These closes provide a different daily comparison from the trading levels Reuters recorded when its report was published during the session. In price forecasts reported by Reuters, HSBC said it expected silver to average $64 an ounce in 2027, down from its forecast of $71 for 2026. As for the Fed’s next move, the Associated Press reported that most economists still expected a quarter-point increase at its Dec. 8 and 9 meeting, and that Wall Street investors put the likelihood of an increase at about 85%.