Gold falls below $4,000 as silver extends losses amid Fed rate hike concerns

Gold and silver declined sharply on Friday, October 30, as stronger US economic data reinforced expectations of further Federal Reserve tightening, putting precious metals under pressure despite renewed weakness in global equity markets.

Gold slipped below the $4,000 threshold, while silver suffered heavier losses amid concerns over industrial demand and the outlook for US interest rates.

Price overview

Spot gold fell 0.98% to $3,982.03 an ounce in Friday's trading.

Spot silver declined 3.09% to $50.56 an ounce.

Gold fluctuated between $3,965.37 and $4,026.43, while silver traded between $50.43 and $52.24.

Fed outlook pressures bullion

The Federal Reserve maintained its benchmark interest rate at 3.75%–4.00% on Wednesday, with two policymakers favoring an immediate increase.

Thursday's economic figures strengthened the case for further tightening, showing US GDP expanding by an annualized 3.4% in the third quarter, while annual PCE inflation accelerated to 3.6% in September.

The figures complicated expectations that the central bank could soon bring its tightening cycle to an end.

Silver suffers steeper losses

Silver's decline outpaced gold as investors reassessed industrial demand prospects and reduced exposure to precious metals.

The metal's greater sensitivity to economic conditions has amplified its losses, particularly as elevated borrowing costs threaten manufacturing activity.

Gold, meanwhile, failed to benefit substantially from renewed pressure on technology stocks following disappointing corporate earnings.

Market outlook

Gold faces immediate support near $3,965, followed by the psychologically important $3,950 level. Resistance stands around $4,000 and $4,026.

Silver faces support near $50.43, while resistance lies around $52.24.

Both metals remain vulnerable to further selling if expectations of another US interest rate increase strengthen, although a retreat in Treasury yields could provide some relief.