Gold fell 1.6% to $3,956.09 an ounce, its lowest level since June 30, while silver dropped 4.53% to $50.01 after briefly falling below $50. Gold was down 4.7% for October as inflation worries and rising oil prices reinforced expectations of US rate hikes.
Spot gold fell 1.6% to $3,956.09 an ounce by 1243 GMT, after reaching its lowest level since June 30. December US gold futures dropped 1.64% to $3,965.30, and bullion was down 4.7% for the month. Silver fell 4.53% to $50.01 after touching $49.94, its lowest level since November 2025.
Stronger-than-expected US GDP growth and accelerating inflation in September bolstered economists’ expectations of a December rate hike. UBS analyst Giovanni Staunovo said higher oil prices were adding pressure on the Federal Reserve to raise rates further. He also said gold could reach $5,000 or higher next year if the Fed eventually cuts rates and inflation ceases to be a problem.
Oil prices climbed as an attack on a tanker in the Strait of Hormuz highlighted continuing supply risks. Platinum fell 3.83% to $1,430.82 an ounce and palladium dropped 3.78% to $968.00; all three metals were poised for weekly and monthly declines.
