Spot gold and silver prices saw significant declines in late U.S. trading on Thursday. The drop followed stronger-than-anticipated economic growth and persistent inflation, which bolstered expectations that the Federal Reserve will implement further monetary tightening before the end of the year. While a dip in crude oil prices helped ease concerns regarding energy-driven inflation, and renewed diplomatic efforts between Washington and Tehran lowered immediate fears of a Middle East escalation, the precious metals failed to attract sustained safe-haven buying. This occurred despite a technology-led selloff on Wall Street and lower Treasury yields. Spot gold was trading near $4,024.60 an ounce, down $42.00, or 1.03%, while spot silver traded near $52.180, down $1.672, or 3.10%.
Thursday’s U.S. <a s largest economy despite higher borrowing costs. The advance estimate for third-quarter gross domestic product showed an annualized growth rate of 3.4%, surpassing the expected 3.2% and marking an acceleration from the 2.2% growth seen in the second quarter. Consumer spending rose at an annualized rate of 3.8%, with business investment and government spending also fueling the expansion. These figures reinforced the view that domestic demand remains robust enough to withstand restrictive monetary policy, even as high financing costs impact interest-rate-sensitive sectors like housing.
The Federal Reserve’s preferred inflation gauge also pointed to ongoing price pressures. The personal consumption expenditures price index for September rose 0.5% month-over-month, up from 0.3% in August, while the annual inflation rate climbed to 3.6% from 3.4%. Core PCE inflation, which strips out food and energy, increased 0.3% for the month and 3.1% annually, compared to 3.0% in August. Personal income grew by 0.2%, and consumer spending rose 0.5%, leaving inflation-adjusted spending largely unchanged. The personal saving rate dipped to 3.8%, indicating that households are setting aside a smaller portion of their disposable income even as nominal consumption continues to rise. Weekly initial jobless claims fell to approximately 194,000, suggesting that layoffs remain relatively contained despite signs of cooling activity in specific industries.
Market focus remains centered on the probability of another Federal Reserve rate hike in December, following Wednesday’s decision to hold the benchmark federal funds target range at 3.75% to 4.00%. The Federal Open Market Committee voted 10-2 to keep rates steady, with two members advocating for an immediate 25-basis-point increase. Thursday’s data—combining stronger economic growth with core inflation remaining above the Fed’s 2% target—solidified expectations that monetary policy will remain restrictive. Although Treasury yields fell during the equity market selloff, the prospect of continued tightening limited demand for non-yielding bullion. The 10-year yield hovered near 5.0%, and the dollar maintained support from the firm outlook for U.S. interest rates. The fact that gold declined despite lower yields suggests that market positioning and long-term policy concerns outweighed defensive demand.
The situation involving the Strait of Hormuz and U.S.-Iran relations remained a major source of uncertainty on Thursday, though fresh diplomatic efforts helped mitigate immediate fears regarding military escalation and disruptions to Middle Eastern energy supplies. U.S. Vice President JD Vance has attempted to restart negotiations via a letter to Mohsen Rezaei, head of Iran’s Supreme National Security Council, while Qatari mediators have introduced a separate draft proposal to resolve the conflict. However, a senior Iranian official rejected the latest proposal, highlighting the deep divisions that persist between Washington and Tehran regarding sanctions, security protocols, and the future of maritime access through the Strait of Hormuz.
These diplomatic overtures follow renewed threats to Gulf energy infrastructure and commercial shipping, including a reported Houthi attack on Saudi Arabia’s Ras Tanura refinery. While no major operational disruption has been independently confirmed at the facility, the ongoing risk of attacks on oil installations and tanker traffic has kept a significant geopolitical premium in crude prices. Alternative export infrastructure has helped offset some shipping issues, though security concerns and rising insurance costs continue to hinder the normalization of trade through the waterway. Brent crude futures settled down 0.38% at $114.88 a barrel, while Nymex WTI futures fell 0.76% to settle at $102.00 a barrel, after both benchmarks saw much larger intraday losses.
For gold, the retreat in crude oil prices eased immediate concerns regarding energy-driven inflation, while the persistent risk of a breakdown in U.S.-Iran talks provided a baseline of defensive demand. Nevertheless, Thursday’s strong GDP report and stubborn core inflation reinforced the outlook for restrictive U.S. monetary policy, capping the metal’s recovery potential. Silver faced heavier selling pressure as the broader precious metals decline coincided with worries over industrial demand, financing costs, and the impact of high energy prices on global manufacturing.
North American equity markets closed mostly lower on Thursday, as heavy selling in major technology stocks overshadowed gains in other areas. The Dow Jones Industrial Average fell about 0.3% to close at 52,342.56, while the S&P 500 dropped 0.3% to 7,720.39, halting a three-session winning streak. The Nasdaq Composite slid 381.28 points, or 1.44%, to finish at 26,168.57, pressured by a sharp decline in Alphabet shares following disappointing quarterly results and renewed skepticism regarding the profitability of large-scale artificial intelligence investments. Alphabet’s Class A shares tumbled approximately 13.3%, and the broader tech sector remained sensitive to rising capital expenditure and financing needs. The Russell 2000 outperformed, gaining about 1.0% to 2,859.22, suggesting that selling was concentrated in specific large-cap growth stocks rather than the broader market. Canada’s S&P/TSX Composite Index ended lower, as weakness in materials and energy shares outweighed gains in parts of the financial sector.
European equity markets finished higher on Thursday after the European rates unchanged, as anticipated, while signaling that further tightening could be considered if inflation remains persistent. The pan-European Stoxx 600 rose about 0.8% to 649.43, while Germany’s DAX climbed 1.4% to 26,052.75 and France’s CAC 40 gained 1.1% to 7,970.00. The U.K.’s FTSE 100 added about 0.3%, finishing near 10,722. European equities were buoyed by select corporate earnings and improved sentiment toward industrial and financial stocks, though high energy costs and concerns over restrictive monetary policy remained key factors. The ECB held its deposit rate at 2.50% while continuing to evaluate how high energy prices impact inflation and economic growth. The divergence between stronger European equities and the weakness in major U.S. tech stocks underscored the impact of company-specific earnings and sector positioning on global risk sentiment.
Key outside markets saw Nymex WTI crude oil futures settle at $102.00 a barrel, while Brent crude futures finished at $114.88. The yield on the benchmark 10-year U.S. Treasury note declined as investors sought the relative safety of government bonds during the technology-sector selloff. The U.S. dollar remained supported by expectations for restrictive Federal Reserve monetary policy, which limited the relief for precious metals that might have otherwise come from lower crude prices and bond yields.
Technically, the next upside objective for spot gold bulls is to push prices back above the $4,084.00 to $4,146.00 resistance zone; a sustained move above the upper boundary is required to reverse the current bearish technical bias. The next near-term downside objective for bears is a break below $4,024.00, with a deeper target at $3,986.00. First resistance is seen at $4,084.00, followed by $4,146.00. First support is at $4,024.00, followed by $3,986.00.
For spot silver, the next upside objective for bulls is to drive prices back above the $54.680 to $56.420 resistance zone, with a sustained recovery through the upper boundary needed to improve the near-term technical outlook. The next downside objective for bears is a break below $52.690, with a deeper target at $51.300. First resistance is at $54.680, followed by $56.420. Next support is at $52.690, followed by $51.300.
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