December COMEX gold futures closed down $20.20, or 0.50%, on Thursday, October 29, according to Barchart, with the contract quoted at 4,031.4. December COMEX silver fell 2.40%, with the contract quoted at 52.380. Barchart columnist Rich Asplund attributed the decline in precious metals largely to a sell-off in equities, which may have prompted some investors to sell precious metals positions to cover stock losses.
The move came despite some support from the dollar and Treasury yields. Barchart reported that the dollar index fell 0.16% on Thursday as the 10-year T-note yield declined, narrowing US interest rate differentials. Precious metals had also been supported by these moves in the currency and bond markets.
Gold continues to draw underlying safe-haven support from Middle East tensions, according to the report. Barchart cited persistent Houthi attacks on Saudi targets and speculation that the United States could launch a new military attack on Iran after the US election on November 3. The Wall Street Journal reported late Tuesday that the US had told several Persian Gulf countries to be prepared for a short, intense military campaign against Iran, although President Trump had not yet decided to proceed and was reportedly leaning toward an attack after the midterm elections.
Fund positioning provided a mixed picture. Barchart reported that long holdings in gold ETFs climbed to a 4.25-year high the previous Wednesday, although those holdings have since eased. Long holdings in silver ETFs rose to a 7.5-month high on Thursday.
Central bank demand remains a key support factor. Barchart reported that bullion held in China's PBOC reserves rose by 740,000 ounces to 77.47 million troy ounces in September, the largest monthly increase in three years and the twenty-third consecutive month of gold purchases by the PBOC. By contrast, Russia's central bank, the sixth-largest central-bank gold holder, said on October 20 that it had reduced its gold reserves to a seven-year low of 72.8 million ounces as of October 1.
The broader macroeconomic backdrop is also shaping expectations for the metal. The Federal Open Market Committee left its federal funds rate target unchanged at 3.75%-4.00%, as expected, and markets were pricing a 78% chance of a rate hike at the FOMC's December 8-9 meeting, according to Barchart. US third-quarter GDP rose 3.4% annualized, above market expectations of 3.2%, and the core PCE price index rose 3.1% year over year in September, remaining well above the Fed's 2% inflation target.
Higher policy-rate expectations generally weigh on non-yielding assets such as gold. Elsewhere, the European Central Bank left its deposit rate unchanged at 2.50%, and ECB President Christine Lagarde announced she will step down on February 7, 2027. Markets were pricing an 84% chance of a 25-basis-point ECB rate hike at the December 17 meeting.
In Japan, Barchart reported that the odds of a Bank of Japan rate hike at its meeting on October 30 were low at 2%, but rose to 83% for the following meeting on December 18. Source: Barchart.com, Rich Asplund, "Dollar is Undercut by Lower T-note Yields," published October 29, 2026.
Source: barchart.com