Global gold prices experienced a sharp decline during trading on Friday (October 30, 2026), reaching their lowest level in a year after a sell-off in U.S. technology stocks triggered pressure across global financial markets.
Spot gold (XAU/USD) plunged 3.5% to US$3,880.97 per troy ounce—its lowest point since October 2025—while U.S. gold futures for December delivery closed down 3.3% at US$3,898.90 per troy ounce. Other precious metals also faced downward pressure; silver prices dropped 6.5% to US$49 per ounce, falling below the US$50 mark for the first time in 11 months.
Meanwhile, palladium also fell below US$1,000 per ounce. This selling pressure reflects growing investor concerns regarding the sustainability of investments in artificial intelligence (AI), as the weakness in tech stocks sparked a broad move toward risk reduction.
The decline in gold was exacerbated by an increased need for liquidity among investors as stock markets underwent a sharp correction. Analysts at Commerzbank suggest that the sell-off in tech stocks likely triggered forced liquidations of various assets—including gold—to meet additional collateral requirements or margin calls. This explains why gold, typically viewed as a "safe-haven" asset, faced pressure during the downturn on Wall Street. Furthermore, expectations that U.S. interest rates will remain higher for longer, combined with weakening demand for gold in Asia, have further hindered any price recovery.
Since reaching a record high of US$5,595 per troy ounce in January, gold has lost approximately 30% of its value. Nevertheless, some analysts believe that central bank gold purchases could increase when prices fall below US$4,000, potentially providing support to the market in the medium term.
Greater pressure is evident in silver, platinum, and palladium, which have seen weekly declines of approximately 7% to 9%. The Relative Strength Index (RSI) for all three metals has reportedly reached its deepest "oversold" territory in three years, signaling strong downward momentum.
Unlike gold—which benefits from central bank demand and the need for diversification into safe-haven assets—silver and other "white metals" are more sensitive to the outlook for global industrial growth. HSBC forecasts an average silver price of US$64 per ounce by 2027, lower than this year’s projected average of US$71. Meanwhile, the gold-to-silver price ratio has climbed to 79—its highest level in 11 months—reflecting silver’s increasingly lagging performance. Investors are now closely monitoring stability on Wall Street, the outlook for AI-related investments, and the direction of Federal Reserve policy to gauge the potential for a recovery in the precious metals market following a prolonged period of selling pressure.