Gold fell to its lowest level in a year on Friday, and silver dropped below $50 an ounce, as rising oil prices strengthened bets on another Federal Reserve rate hike. A deepening sell-off in technology stocks also forced investors to sell precious metals to cover losses elsewhere. Gold and silver producers fell as much as 8%, according to mining.com.
Spot gold fell as much as 3.2% to $3,891.67 an ounce, its weakest level since October 28 of last year. By late morning in New York, it was trading down 2.7% at $3,910.53. Comex gold for December delivery dropped 3.1% to $3,907.90 an ounce after touching $3,900.90.
A week earlier, gold had slid below $4,000 for the first time since July. Silver fared worse, sliding 5.8% to $49.34 an ounce. This was its first close under $50 since November 2025, and the metal is down roughly 18% for the month.
Mining.com noted that silver has now given back all of the gains it made since early December, when a two-month rally carried it above $120. Comex silver for December delivery fell as much as 6.3% to $49.08 an ounce. Trading volumes were heavy for the time of day.
By midday in New York, futures covering a nominal 18 million ounces of gold and 236 million ounces of silver had changed hands on the Comex. Gold is on track for a decline of about 6% in October, its worst October performance since 2008, and a second consecutive monthly loss. Bullion is trading about 28% below the record close of $5,419.83 set on January 28.
The sell-off came from two directions. Fears of renewed US military action against Iran, including a possible attack on a tanker in the Strait of Hormuz, pushed Brent crude to its highest level since April. Oil is also heading for a fourth straight monthly gain, which reinforces inflation concerns.
The Fed raised rates in September for the first time since July 2023. Both the Fed and the European Central Bank held rates steady this week but pointed to inflation risks from surging energy costs. US inflation data released Thursday showed an acceleration in September.
According to Reuters and Bloomberg, traders now price a chance of more than 70% of another Fed hike in December. Zaner Metals senior metals strategist Peter Grant told Reuters that the message from markets was that the “higher-for-longer” theme prevails, adding that inflation worries are keeping several central banks on a hawkish path. At the same time, technology shares led global equities lower for a second day.
Disappointing earnings accelerated a rotation out of the artificial intelligence trade and into Treasuries, and the Nasdaq was set for steep losses on concerns about AI spending. Bart Melek, global head of commodity strategy at TD Securities, told Bloomberg that higher oil is driving a risk-off move into Treasuries that drains liquidity from both equities and bullion. He said gold is “getting caught up in the momentum” and that trend-following investors are now testing long-term support in both metals.
Commerzbank analysts said the fall in technology stocks may have triggered margin calls and forced selling. They described the decline in precious metals as exaggerated and still expect a recovery, according to mining.com. Physical demand has not yet stepped in to support prices.
Reuters reported that buying in India remained subdued this week as consumers waited for lower prices. Demand in China, the top consumer market, also stayed muted. Mining.com noted that Asian investors have been buying gold-backed funds that North American investors are selling.
The slide in silver has pushed the gold-silver ratio to its highest level since December. Ole Hansen, head of commodity strategy at Saxo Bank, said the divergence highlights silver's vulnerability relative to gold. He warned that further liquidation by technically driven funds could push silver toward the mid-$40s.
Platinum fell 4% to its lowest level since September 2025, and palladium dropped 3.1% to a low last seen in June 2025. Gold and silver producers fell further than the metals themselves on Friday. Mining.com reported that the sector has lost a third or more of its value from highs set earlier this year.
The sector's decline also knocked $264 billion off the market value of the world's 50 largest miners during the third quarter. Newmont, the world's largest gold miner, fell 5% by late morning in New York, cutting its market value to $110 billion. The stock is more than 20% below its 52-week high.
Agnico Eagle Mines lost 6.7%, giving it an $83 billion valuation, and Barrick Mining fell 5% to $60 billion. Barrick is down almost 16% for the year. Wheaton Precious Metals, the largest streaming company, lost 5.1%, and Franco-Nevada, which held up best among the group, fell 2.2%.
Kinross Gold was the weakest of the major producers, sliding 7.7% to near its 52-week low. The Toronto-based company has shed 17% in October alone and is now worth $23 billion. Alamos Gold, which fell 5.2% a day after delaying a shaft at its Island Gold mine because of rising costs, is also trading at a 52-week low.
Harmony Gold fell 7%, Gold Fields fell 6%, and AngloGold Ashanti fell 5.8%. Eldorado Gold lost 4%, extending a drop from Thursday after it cut its gold outlook by 18%. Mining.com calculated that Newmont, Agnico, Barrick, Wheaton and Franco-Nevada, North America's five most valuable gold companies, have lost almost $140 billion in combined market value from their 52-week highs.
Agnico alone accounts for more than $40 billion of that loss. Silver producers have been hit hardest. Hecla Mining fell 6% on Friday and is down 60% from its 52-week high, with a market capitalization of $9 billion.
Coeur Mining dropped 6.2% to a $13.5 billion valuation. It is down 25% in October and 53% from its peak. First Majestic Silver fell 6% and has lost more than half its value from its high.
Pan American Silver fell 6.3% and is now worth $16 billion, 44% below its high. Over a longer horizon, the picture is mixed. Newmont is still up a third over the past 12 months and Barrick is up 15%, but Kinross is down 14% from a year ago and Coeur is down 28%.
Sources: mining.com, with reporting from Reuters and Bloomberg. Additional commentary from Zaner Metals, TD Securities, Commerzbank and Saxo Bank as cited in the original report.
Source: mining.com