Gold falls 2.7% to $3,910.53 before modest rebound at start of November
Key Facts
Spot gold fell 2.7% to $3,910.53 an ounce by 10:05 a.m. Eastern Time on October 30, its lowest level since October 2025, according to Reuters via MarketScreener. U.S. gold futures for December delivery fell 2.8% to $3,919.60 an ounce in the same session. The losses coincided with a broad decline in U.S. stocks, with the S&P 500 down 1.8% in its worst day since June, the Nasdaq down 2.9% and the Dow Jones down 1.1%, according to the Associated Press. Silver also fell 5.8% to $49.34 an ounce, its lowest level since November 2025, trading below $50 for the first time since that month. EL7 data showed spot gold XAUUSD closing at $3,875.645 and GCUSD futures closing at $3,898.9 on October 30; these daily closing prices differ from Reuters' morning snapshot.
Bullion prices were on track for a second consecutive monthly decline, having fallen 5.9% in October through October 30, Reuters reported. Commerzbank analysts said the drop in technology stocks may have prompted investors to sell liquid assets, including metals, to meet margin calls. The analysts said the decline in precious metals prices was excessive, adding: "We think the decline is excessive, and we continue to expect a recovery." Reuters noted that weak physical demand in major Asian markets added pressure on gold. Buyers in India postponed purchases while waiting for further declines, while demand in China remained limited. This coincided with a selloff in technology stocks fueled by concerns that AI fever had pushed valuations to elevated levels.
Intel was among the biggest losers in the October 30 session, falling about 29% after the company issued an earnings forecast below analysts' estimates, its worst day since 1974, according to the Associated Press. Amazon's latest results raised further concerns about how much companies are spending on AI investments. This widened pressure on technology stocks as investors questioned the returns companies would earn on their spending, alongside growing concern about valuations. The decline was reflected in the major market indexes, while Commerzbank analysts linked the stock market turmoil to possible forced asset sales and margin calls. They said this could explain some of the pressure on precious metals during the session. They added that they still expected prices to recover despite the steep decline.
On inflation, the U.S. personal consumption expenditures price index rose 0.5% in September from the previous month and 3.6% year over year, according to the U.S. Bureau of Economic Analysis. The core index, which excludes food and energy, rose 0.3% monthly and 3.1% annually. The data come amid market expectations for the path of interest rates, which affects gold's appeal, while the Federal Reserve kept its target range for rates at 3.75% to 4% in its October 28 decision. The decision was approved by a 10-to-2 vote, with Lisa Cook and Beth Hammack preferring a quarter-percentage-point increase in the range. The Fed scheduled its next meeting for December 8 and 9, 2026. The Bureau of Economic Analysis also announced that it would publish October personal income and spending data on November 25 at 8:30 a.m. Eastern Time.
In a later update on the morning of November 2, spot gold rose 0.8% to $3,903.90 an ounce by 07:57 GMT, and December futures gained 0.4% to $3,913.20, according to Reuters. Silver rose 2.5% in the same trading to $50.33 an ounce, returning above $50 after falling below that level on October 30. Oil prices fell more than 3% after reports of Iranian-Qatari talks in Doha, easing inflation concerns and helping precious metals rebound. An analyst at Capital.com attributed the move to a technical recovery after the selloff and to lower oil prices, which provided some relief for metals. He said: "We are seeing a rebound after the selloff, alongside lower oil prices at the start of the week, providing some relief for precious metals generally."
However, an analyst at Saxo Bank said gold faces a difficult near-term environment, as technical selling pressure and liquidity concerns outweigh its longer-term investment appeal. The assessment follows a decline that coincided with weak physical demand in Asia and falling stocks, as well as U.S. inflation data showing an acceleration in the annual headline and core indexes. The analyst pointed investors to the U.S. midterm elections scheduled for November 3 as a milestone that could affect fiscal policy and broader market sentiment. Upcoming data and monetary policy dates remain in focus for the market: October income and spending data will be released on November 25, and the Fed will meet on December 8 and 9. Trading on November 2 showed gold and silver rebounding as oil fell, following losses recorded at the end of October.