Tech rout drives gold to one-year low, white metals sink deep into oversold zone

By Noel John and Polina Devitt

Oct 30 (Reuters) - Gold prices hit their one-year low on Friday while white precious metals silver, platinum and palladium slid deep into technically oversold territory, as tech shares slumped amid worries that AI spending may not deliver sufficient returns.

Spot gold fell 3.1% to $3,897.09 an ounce by 11:47 a.m. ET (1547 GMT) — its lowest level since October 2025 — while silver dropped 6% to $49, breaking below $50 for the first time in 11 months, and palladium slid below $1,000.

"The sky is falling," said independent metals trader Tai Wong. "Metals will not be able to escape the gravity well of a nasty stock correction. Earnings have been the foundation of the AI rally and now that pillar is showing some cracks."

Friday's sharp fall in technology stocks may have led to forced selling of safe-haven assets, such as gold, and margin calls, analysts at Commerzbank said in a note, adding that they expected a recovery in precious metals ahead.

Gold is down 30% since hitting a record high of $5,595 in January due to bets on rates staying higher for longer and is currently under pressure from muted demand in Asia. Analysts, however, say central bank demand tends to strengthen whenever gold is below $4,000.

Meanwhile, the three white precious metals lack the support that gold has received in recent years from purchases by central banks and safe-haven investment demand.

This week's 7% to 9% fall in silver, platinum and palladium, compared with a 2% decline in gold, took their Relative Strength Index deeply into the "oversold" zone for the first time in three years, signalling the strength of current bearish momentum.

"What is particularly troublesome for the white metals is that the downturn has been grinding and relentless rather than a sharp spike that is quickly recovered," Wong said.

Silver was increasingly viewed as an industrial growth-dependent commodity. HSBC said industrial and jewellery demand for silver was falling, with the average price expected at $64 per ounce in 2027.

To buy a single ounce of gold, one currently needs 79 ounces of silver , the most in 11 months, compared with 46 ounces in January, when silver hit a record high of $122.

From a historical perspective, silver still has room to fall further vs gold: this ratio, according to consultancy Metals Focus, averaged 82 in 2020 to 2025.

Platinum and palladium touched their lowest levels in 13 and 17 months respectively, with palladium slipping below $1,000 an ounce and the gold-platinum ratio climbing to 2.7, the highest since mid-2025.

Platinum was last down 4% at $1,434, while palladium lost 3% to $977 under pressure from worries about auto sector demand.