Gold fell sharply on Friday to its lowest level in more than a year, breaking below $4,000 an ounce as higher oil prices revived fears of stubborn inflation and further interest-rate rises. Spot gold dropped about 3.5% on the day to around $3,880 an ounce, its weakest since October 2025, while silver also slid below $50 an ounce for the first time since November 2025.

A bruising month for gold

The fall capped a difficult October for the metal. Comex gold futures ended the month 6.49% lower at $3,885.70 an ounce, according to Dow Jones market data, leaving the contract about 27% below its record high of $5,318.40 set on 29 January 2026. Other reports put gold on course for its worst October since 2008, a sharp reversal from the record highs seen at the start of the year.

Why gold fell despite weaker yields

Analysts described the sell-off as frustrating for gold holders, because it came even as bond yields fell and the US dollar softened — conditions that would normally support the metal. Instead, traders focused on strong US economic data, the Federal Reserve holding rates at 3.75% to 4.00%, and the inflation risk from oil near $117 a barrel. Technical analysts also noted gold had fallen well below its 200-day moving average near $4,490.

What traders watch next

Kitco reported that one technical analyst expects gold to test support near $3,800 an ounce if selling continues. With US employment data and the 3 November midterm elections ahead, the coming week is expected to bring fresh volatility. For buyers, the break below $4,000 is now the key level: holding it could stabilise prices, while a sustained move lower would confirm the bearish trend.