Gold Hits Over a Year Low, Silver Drops Below $50 an Ounce

Gold prices fell on Friday to their lowest level in a year, while silver, platinum, and palladium prices dropped to levels that technically signal a sell-off, amid a decline in technology stocks and concerns that artificial intelligence spending may not yield sufficient returns.

Spot gold fell 3.5 percent to $3,880.97 per ounce, its lowest since October 2025. Silver dropped 6.5 percent to $49, falling below the $50 mark for the first time in 11 months, while palladium slipped below $1,000. US December gold futures fell 3.3 percent to $3,898.

Independent metals trader Tai Wong said, “The fundamentals are crumbling. Metals cannot escape the pull of a sharp correction in the stock market. Earnings were the foundation supporting the AI rally, and now this pillar is showing signs of cracking.”

Analysts at Commerzbank noted in a report that the sharp decline in technology stocks may have triggered forced sales of safe-haven assets like gold, as well as margin calls, but they expect a recovery in precious metals soon.

Gold has fallen 30 percent since reaching an all-time high of $5,595 in January, weighed down by bets that interest rates will remain higher for longer, and is currently facing pressure from weakening demand in Asia. However, analysts say central bank demand tends to rise as gold prices fall below $4,000.

Meanwhile, silver, platinum, and palladium lack the support gold has enjoyed in recent years from central bank purchases and safe-haven investment demand.

This week’s decline of 7 to 9 percent in silver, platinum, and palladium, compared to a 2.9 percent drop in gold, pushed their relative strength index into deep oversold territory for the first time in three years, indicating strong downward momentum.

Silver is increasingly viewed as an industrial growth commodity. HSBC stated that industrial demand and jewelry demand for silver are declining, and it now expects the average silver price to be $64 per ounce in 2027, down from its previous forecast of $71 for this year. Silver reached an all-time high of $122 in January. Platinum hit its lowest level in 13 months, and palladium its lowest in 17 months, as palladium fell below $1,000 per ounce.

Among other precious metals, platinum fell 4.2 percent to $1,425.02, and palladium dropped 3 percent to $976.08, pressured by concerns over automotive sector demand.