The latest sell-off has deepened monthly losses across the precious metals market, with silver experiencing a significantly steeper fall than gold.
Gold and Silver Price Fall Sharply
Spot gold declined 2.7% to $3,910.53 per ounce on Friday, reaching its lowest level since October 2025. Meanwhile, US gold futures for December delivery fell 2.8% to $3,919.60 per ounce.
Gold has lost approximately 5.9% this month and is heading towards its second consecutive monthly decline.
Silver faced even stronger selling pressure. Spot prices plunged 5.8% to $49.34 per ounce, slipping below the psychologically important $50 level for the first time in nearly a year.
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Why Are Gold and Silver Prices Falling?
The biggest challenge for precious metals is the growing expectation that global interest rates will remain elevated for longer than previously anticipated.
Higher energy prices have intensified inflation worries, making central banks cautious about reducing borrowing costs.
Although major central banks kept interest rates unchanged this week, their statements suggested that inflation remains a serious concern.
Both the US Federal Reserve and the European Central Bank highlighted risks associated with rising energy costs.
Additionally, US inflation data released on Thursday showed that consumer prices accelerated in September, partly due to higher gasoline and goods prices. This strengthened market expectations of another potential interest rate increase in December.
Higher interest rates generally make non-yielding investments such as gold and silver less attractive compared with interest-bearing assets.
Technology Stock Sell-Off Adds More Pressure
Weakness in global technology stocks may also have contributed to the precious metals downturn.
Analysts at Commerzbank suggested that the sharp decline in technology shares could have triggered margin calls and forced investors to sell other assets, including gold and silver, to cover their positions.
However, the analysts believe the correction in precious metals may have gone too far and continue to anticipate a recovery.
Meanwhile, the Nasdaq was heading towards a weak Friday opening as investors grew increasingly concerned about heavy spending on artificial intelligence.
Oil prices added another layer of uncertainty. Crude was on course for its fourth consecutive monthly gain, reinforcing fears that inflation could remain elevated and delay future interest rate cuts.
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Weak Asian Demand Offers Little Support to Gold
Physical gold demand across major Asian markets has remained subdued, providing limited support to falling prices.
In India, many buyers delayed purchases in anticipation of further price corrections. Demand in China, another major gold-consuming market, was also relatively weak.
This cautious buying behaviour has made it harder for gold prices to stabilise despite the recent decline.
Platinum and Palladium Prices Also Decline
The selling pressure was not limited to gold and silver. Other precious metals also recorded substantial losses.
| Precious Metal | Price per Ounce | Daily Decline |
|---|---|---|
| Gold | $3,910.53 | 2.7% |
| Silver | $49.34 | 5.8% |
| Platinum | $1,428.35 | 4.0% |
| Palladium | $975.25 | 3.1% |
Platinum touched its lowest level since September 2025, while palladium declined to its weakest level since June 2025. Both metals were also heading towards weekly and monthly losses.
What Lies Ahead for Gold and Silver?
The near-term direction of precious metals will largely depend on inflation trends, central bank decisions, energy prices and investor sentiment.
If interest rates remain elevated, gold and silver could continue facing pressure. However, a moderation in inflation or a shift towards easier monetary policy may help restore investor interest.
For now, traders and investors will closely monitor upcoming US economic data and central bank commentary for signs of a potential market recovery.
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Disclaimer: This article is based on the market figures and information provided in the source material. Prices are indicative and may change. This content is for informational purposes only and does not constitute investment advice.
