Gold prices drop sharply at the end of October. The collapse of the safe-haven myth or a search for liquidity? - XTB.com

AI desk brief

Gold plunged more than 3% below $3,900 on Friday, with the article framing the move as a liquidity-driven liquidation rather than a classic safe-haven bid. The sell-off was tied to tech-stock weakness and margin calls, while higher inflation, a >70% implied probability of a December Fed hike, and 10-year Treasury yields around 4.95% kept the opportunity cost of holding gold elevated.

The piece says the metal is now down nearly $800 from its late-August peak near $4,700 and roughly 6% in October, the worst October since 2008. Near-term technical support is flagged at $3,850-$3,880, with a break exposing $3,800; resistance sits at $4,000, then $4,100 and the $4,200-$4,490 moving-average cluster. Silver fell nearly 5% to $49.64/oz, while platinum and palladium also remained under pressure.