Gold Prices Fall for the Second Month in a Row: What’s Happening in the Market
30 October 10:36
Global gold prices have fallen to nearly $4,000 per troy ounce. The sell-off in tech stocks is forcing some market participants to sell gold to cover their losses.
This was reported by "Komersant Ukrainian", citing Bloomberg.
In October, the precious metal fell in price by nearly 4% and may end the month with its second consecutive decline.
Why is gold getting cheaper?
Pressure on the price was intensified by U.S. inflation data. On Thursday, the Personal Consumption Expenditures price index, tracked by the Fed, rose 0.5% over the month. This is the largest increase since March. After deciding to leave the rate unchanged, the Fed did not rule out raising it by the end of the year.
High oil prices are also fueling inflation fears. The market is watching for signs of a possible resumption of U.S. military strikes against Iran following next week’s midterm congressional elections. If energy prices continue to rise, this could intensify inflationary pressure and influence the Fed’s decisions.
At the time of publication, Bloomberg reported that spot gold was trading at $4,003.44 per ounce—down 0.5%.
Silver fell 1.3% to $51.47 per ounce. Its price has dropped by about 15% in October.
Platinum and palladium also lost value.
SEE ALSO: Ukrainians Are Buying More Gold: An Economist Explains the Possible Reasons
How the stock market sell-off affects gold
Gold is traditionally considered a safe-haven asset, but during a major stock market crash, investors may sell it to cover losses or raise cash. For the second day in a row, tech stocks have been falling due to disappointing financial results and waning interest in stocks related to artificial intelligence.
According to Ole Slot Hansen, head of commodity strategy at Saxo Bank, gold has remained relatively stable so far. But traders are watching to see if the sell-off in the U.S. stock market will continue: this could intensify asset sales and liquidity shortages across various markets.
Gold prices are being supported by purchases from Chinese households and long-term investors who are taking advantage of the price decline.
What Happened with Gold Previously
In early October, gold prices rose amid a weaker dollar and changes in interest rate forecasts. At that time, the price of gold exceeded $4,180 per ounce.
Previously, precious metal prices had also hit new all-time highs. In particular, in the fall of 2025, gold futures exceeded $4,200 per ounce amid geopolitical tensions and expectations regarding Fed policy.
Now the market is weighing opposing factors: inflation risks and a possible rate hike are weighing on gold, while geopolitical tensions and demand for safe-haven assets may limit the decline.
Near-term price movements will depend on oil prices, new economic data from the U.S., and stock market behavior.
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