Spot gold fell nearly 4% to close at $3,875.55 an ounce on Friday, its lowest level in more than a year, as higher oil prices kept bets on a December US rate rise alive. Silver dropped below $50 an ounce.
At a glance
- Forced selling after a fall in technology shares added to the pressure on gold and silver, analysts at Commerzbank said.
- In Delhi, 99.9% gold fell Rs 3,200 to Rs 1,42,000 per 10 grams on Saturday, a 10-month low.
- US jobs data and the November 3 midterm elections are the next tests for bullion.
Background
Gold pays no interest, so expected rate rises make it less attractive than bonds or deposits. Oil prices have risen during the US conflict with Iran, which adds to inflation worries and keeps the Federal Reserve leaning towards higher rates. Indian gold prices follow the global price and the rupee, so overseas falls usually pass quickly to the domestic market.
What happened
Spot gold fell $145.84, or nearly 4%, to close at $3,875.55 an ounce on Friday, PTI reported. It was the lowest level in more than a year, Kitco and PTI said.
US gold futures for December delivery settled 3.3% lower at $3,898.90, Reuters reported. Spot silver fell about 6% to $49.12, breaking below $50 for the first time since November 2025.
Gold is now more than a quarter below the record it set in January.
Why prices fell
Higher oil prices are feeding inflation worries, and traders expect the Fed to raise rates again in December. Gold usually loses appeal when rates are expected to rise.
A fall in technology shares added a second source of selling. Analysts at Commerzbank said the share sell-off may have triggered margin calls and forced sales of gold, but called the decline exaggerated and still expect a recovery.
Waleed Said, a technical analyst at GivTrade, told Kitco he expects gold to test support at $3,800 an ounce.
What it means for Indian buyers
Gold of 99.9% purity fell Rs 3,200 to Rs 1,42,000 per 10 grams in Delhi on Saturday, the All India Sarafa Association said. Silver dropped Rs 4,200 to Rs 1,86,000 per kg.
Manav Modi of Motilal Oswal Financial Services said higher oil prices and firm inflation had revived expectations of a December Fed rate rise. He added that an equity sell-off linked to artificial intelligence stocks forced investors to raise cash, while silver's industrial use deepened its fall.
Our read
Outlook: bearish. Rising oil prices and expected Fed rate rises are pushing gold lower, and forced selling after the fall in tech shares added to the fall.
What to watch
- The US jobs report for October, due next Friday.
- The US midterm elections on November 3.
- Oil prices and any sign of easing tension with Iran.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-30: Spot gold closes at $3,875.55 an ounce, its lowest in more than a year.
- 2026-10-31: Gold in Delhi falls Rs 3,200 to Rs 1,42,000 per 10 grams.
- 2026-11-03: US midterm elections.
Demand Drivers
Investors sold gold to cover losses after a fall in technology shares.
Inflation
Higher oil prices are lifting inflation expectations and keeping central banks cautious.
Interest Rates
Traders expect the Fed to raise rates again in December, which lowers the appeal of gold.
What could lift prices
- Commerzbank called the fall exaggerated and expects precious metals to recover.
- Weaker US jobs data could reduce the chance of a December rate rise.
What could weigh on prices
- Higher oil prices keep rate-rise expectations alive.
- More forced selling could follow if technology shares keep falling.
Country impact
| Country | Impact | Reason |
|---|---|---|
| United States | High | Fed rate expectations are the main driver of gold prices this week. |
| India | High | Delhi gold fell to a 10-month low as global prices dropped. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Investment and Wealth Management | Negative | Gold and silver holdings lost value in the sell-off. |
| Jewellery | Positive | Lower prices may bring back buyers who delayed purchases. |
Who gains, who loses
- Jewellery buyers in India: Gold costs Rs 3,200 less per 10 grams than on Friday in Delhi.
- Gold and silver investors: Holdings have lost value as prices fell to their lowest in more than a year.
Other ways this could play out
- If US jobs data is weak, rate-rise bets could fade and gold could recover.
- If oil keeps rising, gold could test $3,800 an ounce, as GivTrade's Waleed Said expects.
Price risks
- Further falls in technology shares could trigger more forced selling of gold.
- A stronger US economy could firm up expectations of higher rates.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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