Spot gold dropped 3.5% to settle at $3,880.97 per ounce, leaving it down 30% from its January record high of $5,595. Meanwhile, white metals sank into deeply oversold territory as auto sector worries and weakening jewelry demand accelerated broad-based selling. Analysts noted that while gold often attracts central bank buying below the $4,000 threshold, assets like silver, platinum, and palladium face steeper downside risks without regular reserve support.
Key points
Forced liquidations linked to technology stock margin calls are driving safe-haven assets…: Forced liquidations linked to technology stock margin calls are driving safe-haven assets down alongside broader industrial metals.
The gold-to-silver ratio expanded significantly from 46 ounces in January to 79 ounces, s…: The gold-to-silver ratio expanded significantly from 46 ounces in January to 79 ounces, signaling continued vulnerability for silver.
Unlike gold, white metals lack regular central bank reserve purchases to cushion their de…: Unlike gold, white metals lack regular central bank reserve purchases to cushion their decline amid slowing manufacturing and automotive demand.
Sources checked by our analysis pipeline: 1
Spot gold fell 3.5% to $3,880.97 an ounce by 2:13 p.m. ET (1813 GMT) - its lowest level since October 2025 - while silver dropped 6.5% to $49, breaking below $50 for the first time in 11 months, and palladium slid below $1,000.
US gold futures for December delivery settled 3.3% lower at $3,898.90 per ounce.
"The sky is falling," said independent metals trader Tai Wong. "Metals will not be able to escape the gravity well of a nasty stock correction. Earnings have been the foundation of the AI rally and now that pillar is showing some cracks."
Friday's sharp fall in technology stocks may have led to forced selling of safe-haven assets, such as gold, and margin calls, analysts at Commerzbank said in a note, adding that they expected a recovery in precious metals ahead.
Gold is down 30% since hitting a record high of $5,595 in January due to bets on interest rates staying higher for longer and is currently under pressure from muted demand in Asia. Analysts, however, say central bank demand tends to strengthen whenever gold…
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