Gold prices fell sharply on October 30, with spot gold declining $141.60, or 3.52%, to approximately $3,879.90 per ounce in late U.S. trading. Spot silver dropped $3.15, or 6.06%, to about $49.02 per ounce.
Economist Peter Schiff attributed the decline to a short-term liquidity problem, suggesting in public comments that the issue could affect broader markets as soon as the following week. Schiff characterized the selloff as "an unexpected gift to investors to buy more."
Broader Market Decline
The precious metals selloff occurred amid significant losses across equity markets. The S&P 500 fell 1.8% to 7,580.07, marking its largest daily decline since June. The Nasdaq Composite dropped 2.9%, while Intel plunged nearly 29% following weak profit guidance.
Market analysts linked the decline to technology-sector weakness that triggered liquidation across multiple asset classes. The Federal Reserve had held its benchmark rate at 3.75% to 4.00% on Wednesday, with two policymakers favoring a rate increase.
Economic Context
September's core personal consumption expenditures price index rose to 3.1%, while third-quarter gross domestic product grew at a 3.4% annualized pace. West Texas Intermediate crude settled at $104.12 per barrel following a tanker attack in the Strait of Hormuz, and the 10-year Treasury yield sat near 4.93%.
Bitcoin also experienced volatility during the period, falling to a six-week low of $76,368 following reports of a $6.3 billion Binance hack before recovering to trade above $77,000.
