Tech rout drives gold to one-year low as white metals sink into oversold zone
GLD•Gold fell 3.5% to $3,880.97 an ounce, its lowest level since October 2025, as silver dropped 6.5% below $50 and palladium fell below $1,000. The declines came as technology shares slumped over concerns that AI spending may not deliver sufficient returns.
1. Precious metals decline
Spot gold fell 3.5% to $3,880.97 an ounce, its lowest level since October 2025. Silver dropped 6.5% to $49, below $50 for the first time in 11 months, while palladium fell below $1,000. December gold futures settled 3.3% lower at $3,898.90 per ounce.
2. Selling pressure broadens
Analysts at Commerzbank said technology-stock declines may have prompted forced selling of safe-haven assets and margin calls, while expecting precious metals to recover. Gold is down 30% since reaching a record $5,595 in January, pressured by bets on higher-for-longer interest rates and muted Asian demand. Analysts say central-bank demand tends to strengthen when gold is below $4,000.
3. White metals oversold
Silver, platinum and palladium entered technically oversold territory after falling 7% to 9% this week, compared with a 2.9% decline in gold. Platinum was down 4.2% at $1,425.02, and palladium lost 3% to $976.08, with both pressured by concerns about auto-sector demand. HSBC said silver’s industrial and jewellery demand was falling and forecast an average price of $64 an ounce in 2027, down from its $71 average forecast for this year.
