Gold drops below $3,900 and silver sinks under $50 as precious metals plunge
Precious metals suffered an intense sell-off on Friday. Silver plunged below $50 for the first time since November 2025, while gold dropped beneath $3,900 after equity liquidations forced margin calls.
⚡ Key numbers:
- $49.28 – Friday closing price for silver, down 5.59% on the day
- 3,891 USD – intraday low for gold, its lowest mark since late October 2025
- 60% – total decline of silver from its record peak near $121 in January
- 3.75%-4.00% – current Federal Reserve interest rate target range
Precious metals break key psychological floors
Precious metals experienced aggressive selling into the weekend, with silver sinking more than 5% and breaching the critical $50 threshold. According to FXStreet, silver touched its lowest level since November 2025, putting the metal on track for an 18% monthly loss in October.
Gold also broke below major technical support, plunging under $3,900 to reach an intraday low of $3,891. FXStreet noted that bullion touched its lowest point since October 28, 2025, as investors reassessed the macroeconomic backdrop.
Tech stock liquidation triggers margin calls
The catalyst behind the precious metals slide originated in the equity market, where the S&P 500 dropped 1.82% to 7,580 points. Comparic reported that steep losses across artificial intelligence and technology shares triggered broker margin calls, forcing institutional traders to sell highly liquid gold and silver holdings to raise immediate cash.
The sell-off was compounded by a firm US Dollar Index at 101.96 and resilient economic data. Strong growth alongside elevated Core PCE inflation reduced the probability of looser policy, keeping pressure on non-yielding metals.
Federal Reserve policy and technical outlook
Technical indicators on daily charts show XAG/USD trading well below its 50-day, 100-day, and 200-day moving averages, reinforcing a clear bearish bias. The metal has tumbled roughly 60% from its January peak near $121.
Monetary policy remains another headwind after the Federal Reserve held rates at 3.75%-4.00% on Wednesday. Market odds for a rate increase in December stand at 70%, down from 84% earlier in the week, yet high enough to support the greenback.
What to watch next
- Support levels for silver around the late 2025 lows
- US economic prints leading into the December Federal Reserve interest rate decision
- Stabilisation in major tech equities to stem forced margin liquidation across commodities
Frequently asked questions
Why did gold and silver prices crash on Friday?
A sharp drop in technology and AI stocks triggered margin calls, forcing leveraged investors to sell gold and silver positions to raise cash.
How low did silver and gold fall?
Silver dropped to $49.28 per ounce, below the $50 mark, while gold reached a daily low of $3,891 per ounce.
What are the market expectations for Federal Reserve interest rates?
Traders currently price in a 70% probability of a rate hike at the December Fed meeting, following Wednesday's decision to hold rates at 3.75%-4.00%.
Sources: Comparic, FXStreet, Business Insider Polska, Yahoo Finance.
Disclaimer: This article is for information purposes only and does not constitute investment advice. Data as of Oct 31, 2026, 18:39 may vary by source. Trading leveraged CFDs carries a high risk of losing money.
This article contains AI-generated content.
