On Friday, spot gold slid 2.7% to $3,910.53 per ounce, marking its lowest point since October 2025. The US December futures echoed the decline, falling 2.8% to $3,919.60.
Silver took a sharper hit, falling 5.8% to $49.34 and slipping below the $50 threshold for the first time since November 2025.
These collapses come amid a backdrop of soaring energy prices and stubborn inflation, pushing the US Federal Reserve and the European Central Bank to keep rates high.
Peter Grant, vice‑president and senior metals strategist at Zaner Metals, said the higher‑for‑longer narrative is tightening the market: "We see a sustained hawkish stance that weighs heavily on non‑yielding assets."
Platinum and palladium also trailed, with platinum dropping 4% to $1,428.35 and palladium slipping 3.1% to $975.25, both hitting near‑month‑low levels.
Asian demand remains subdued; buyers in China— the world’s largest gold consumer— held off on purchases, expecting further price falls.
Tech‑stock volatility added to the pressure, as a sharp sell‑off on Nasdaq forced margin calls, prompting analysts at Commerzbank to caution that the metals’ decline may be exaggerated.
Investors now brace for a possible policy shift in December, as the Fed and ECB hint that interest rates could stay elevated, keeping precious‑metal prices on a downward path.