Precious Metals Review

“Gold fell to near $4 000 an ounce — on track for a second monthly loss — as rising oil prices added to inflationary pressure and a tech-stock selloff raised the risk of investors selling the metal to cover losses.

Bullion dropped as much as 0.6% after shedding almost twice that in the previous session. The Federal Reserve left the door open for an interest-rate hike before the end of the year, and data released Thursday showed a 0.5% rise in the US personal consumption expenditures price index last month. That’s the most since March for the central bank’s preferred inflation gauge.

The precious metal has declined almost 4% in October as concerns around renewed fighting in the Middle East keep energy prices elevated. Oil surged on signs that the US may resume military strikes against Iran after next week’s midterm elections.

Gold also remains vulnerable to broader equity liquidations. Technology shares led a global stock selloff for a second session after another round of disappointing earnings fuelled a rotation out of the artificial intelligence trade. That followed an AI-led stocks rout last week that helped drag bullion to the lowest since July. Since then, gold has wavered near $4 000 an ounce, finding some support from Chinese households and long-term investors buying the dip.

Bullion is still “holding well,” said Ole Sloth Hansen, head of commodity strategy at Saxo Bank AS, with traders watching “to see whether the after-hours selloff extends into today’s Wall Street session, potentially triggering broader deleveraging and liquidity-driven selling across markets.”

Meanwhile, silver slid as much as 2% to near $51 an ounce, and was down about 15% so far this month. The metal has erased all of its gains since early December, when it began a dramatic two-month rally to a peak above $120 an ounce.

“Despite silver moving into oversold territory, the risk of further long liquidation and momentum-driven selling from technically focused funds remains,” Hansen said, adding that this could open the door to a move toward the mid-$40s an ounce.

The gold-silver ratio has climbed to the highest since December, meaning it now takes more ounces of silver to buy the same measure of gold. “The divergence underscores silver’s continued vulnerability relative to gold, which continues to attract demand from investors less sensitive to interest-rate developments,” Hansen said.

Spot gold fell 0.5% to $4 003.44 an ounce at 10:42 a.m. in Singapore. Silver slid 1.3% to $51.47 an ounce. Platinum and palladium also declined. The Bloomberg Dollar Spot Index, a gauge of the US currency, slipped 0.2%.”

“Gold prices fell below $4,000 an ounce on Friday, touching their lowest level since July and putting bullion on pace for a second consecutive monthly decline, as elevated oil prices and inflation concerns maintained expectations for higher interest rates.

At 07:56 ET (11:56 GMT), spot gold had fallen 1.4% to $3,966.21 an ounce, while U.S. gold futures dropped 1.4% to $3,974.85 an ounce.

Gold has fallen more than 4% in October as renewed fighting in the Middle East pushed up energy prices. The Federal Reserve kept interest rates unchanged this week, but markets are anticipating renewed monetary tightening at the central bank’s final meeting of the year in December. Higher borrowing costs typically weigh on gold because the non-yielding metal becomes less attractive relative to interest-bearing assets.

Fresh U.S. data this week supported expectations for a fresh rate increase. The overall American economy grew by more than anticipated in the third quarter, while the personal consumption expenditures price index — one of the Fed’s preferred inflation gauges — logged its biggest monthly increase since March.

Gold also remains exposed to broader equity-market liquidations, as investors reassess the returns from heavy artificial intelligence spending, according to ANZ.

Technology stocks retreated for a second consecutive session following another round of disappointing corporate earnings, with Google-parent Alphabet’s shares in particular slumping to their worst day ever.

For much of this week, gold prices have fluctuated around $4,000, finding support from Chinese households and other long-term investors buying on dips.”