Gold hits four-month low, silver falls below $50/oz on Fed hike fears

By Sherin Sans

Oct 30 (Reuters) - Gold fell to its lowest in four months, while silver dropped below $50 an ounce for the first time since November 2025 on Friday, as rising crude oil prices and persistent inflation worries reinforced expectations of US interest rate hikes.

Spot gold slid 1.6% to $3,956.09 per ounce by 1243 GMT, after earlier hitting its lowest since June 30.

US gold futures for December delivery fell 1.64% to $3,965.30 per ounce. Bullion has declined 4.7% so far this month.

Spot silver was down 4.53% at $50.01 per ounce, after hitting a session low of $49.94 — its lowest level since November 2025.

"Gold prices are affected by a combination of two factors, the US GDP data, which came in stronger than expected, and the increase in oil prices putting pressure on the Fed to hike further interest rates," said Giovanni Staunovo, a UBS analyst.

Data on Thursday showed US gross domestic product grew more than expected last quarter, while inflation accelerated in September as consumers paid more for gasoline and other goods, bolstering economists' expectations of a rate hike in December.

"Gold could climb to $5,000 or higher next year, as the Fed will eventually have to cut rates again and inflation will no longer pose a problem," Staunovo said.

Major central banks hit pause on rate hikes this week but made clear the tightening cycle is not over, with the Fed and the European Central Bank both holding rates steady and pointing to inflation risks from surging energy costs.

Oil prices climbed and were set for a fourth monthly gain as an attack on a tanker in the Strait of Hormuz highlighted continuing supply risks from the US-Israeli war on Iran. O/R

Higher energy prices strengthen expectations of a prolonged period of elevated interest rates, making non-yielding assets such as gold less attractive.

Elsewhere, Hackers stole $6.3 billion from Binance in a record crypto heist linked to North Korea, raising concerns about confidence in digital assets.

Platinum dropped 3.83% to $1,430.82 and palladium slid 3.78% to $968.00.

All three metals were poised for weekly and monthly declines.