Gold Falls 3.5% to $3,880.97 an Ounce as Equity Selloff Widens

Key Facts

Spot gold fell 3.5% to $3,880.97 an ounce by 2:13 p.m. Eastern time on October 30, its lowest level since October 2025, according to a Reuters report carried by MarketScreener. The decline came as a selloff in technology stocks widened and concerns grew that interest rates would remain high. Prices had fallen 2.7% to $3,910.53 at 10:05 a.m. before extending their losses later in the session. U.S. gold futures for December delivery settled at $3,898.90 an ounce, down 3.3%. The metal was down 5.9% for October at the time of an earlier report that day and was headed for a second consecutive monthly loss.

Commerzbank analysts said the sharp drop in technology stocks may have triggered forced selling of safe-haven assets, including gold, and margin calls. They linked this possibility to the decline in equities without presenting it as a confirmed cause of all the selling. The analysts, however, said the fall in precious metals prices was excessive, saying: "We believe the decline in precious metals prices is excessive, and we continue to expect a recovery." U.S. stock indexes showed the scale of the retreat on October 30: the Nasdaq fell 2.9%, the S&P 500 dropped 1.8% in its worst day since June, and the Dow Jones declined 1.1%.

An independent metals trader said pressure on the sector was linked to fears of a sharp correction in equities, adding: "Metals will not be able to escape the gravitational pull of a severe equity correction." The decline coincided with a 6.5% fall in silver to $49 an ounce, breaking below $50 for the first time in 11 months. Technology stocks also fell; Intel shares dropped nearly 29% after the company gave a profit forecast below analysts' estimates, according to an Associated Press report. Amazon's results added to concerns about corporate spending on artificial intelligence. These moves show the selloff spreading from equities to metals as interest rate expectations were reassessed.

On monetary policy, an acceleration in U.S. inflation in September strengthened economists' expectations of a rate increase in December, after consumers paid more for gasoline and other goods, according to data cited in a report by The Edge. Major central banks had left interest rates unchanged during the week but indicated that the tightening cycle was not over, highlighting inflation risks linked to higher energy costs. The Federal Reserve described inflation as "still elevated" and said that accumulating more information would help the committee determine the appropriate policy stance to return inflation to its 2% target. The Federal Open Market Committee met on October 27 and 28, and its next meeting is scheduled for December 8 and 9, 2026. The next meeting comes as markets watch the effects of inflation and energy on the path of interest rates.

Rising energy prices added to the pressure on the metal, with oil prices climbing and on track for a fourth consecutive monthly gain in October. Higher energy costs reinforce expectations that interest rates will remain elevated for longer, reducing the appeal of non-yielding gold. In Asia, physical gold demand remained weak during the week in major markets. Buyers in India delayed purchases in anticipation of further price declines, while demand in China remained limited. With the Federal Reserve committee meeting in December, developments in inflation and energy costs will be among the factors markets monitor when assessing monetary policy expectations.