Gold falls below $3,900, silver tumbles as Wall Street selloff triggers liquidation - Kitco PM Report

Key Points:

• Spot gold and silver prices dropped sharply on Friday due to intensified technology sector selloff and liquidation pressure, with gold falling 3.52% to around $3,879.90 an ounce and silver down 6.06% to about $49.015 an ounce, despite falling Treasury yields and geopolitical tensions.
• U.S. economic data showed mixed signals: slowing wage growth and weakening regional manufacturing contrasted with a stronger-than-expected 3.4% GDP growth in Q3, while inflation concerns persisted with headline PCE inflation at 3.6% annually.
• The attack on a commercial tanker in the Strait of Hormuz heightened geopolitical risks and energy market uncertainty, pushing crude oil prices up over 2%, with Brent crude settling at $117.64 a barrel and WTI at $104.12, amid fears of further Middle Eastern supply disruptions.
• U.S. and European equity markets fell sharply, driven by disappointing corporate earnings, especially in technology shares, and concerns over artificial intelligence investment, with the Nasdaq dropping 2.9% and European tech shares also under pressure.
• Market positioning remains conflicted between resilient economic growth, persistent inflation, and risks of financial instability, with expectations for further Federal Reserve rate hikes in December, while gold and silver technical levels suggest potential further downside unless prices recover key resistance zones.