Gold Hits 3½-Month Low as October Slide Deepens Below $4,000
Spot gold fell about 1% on Friday, October 30, to $3,980.40 an ounce, after touching $3,965.36 earlier in the session — its lowest level since July 17, according to Reuters. The drop extends last week's break below $4,000 and puts bullion down 4.3% in October, on track for a second straight monthly decline.
For Canadians, spot is only part of the price. A weaker or stronger loonie changes what you pay per gram, even on the same spot move. Check the live gold price today in Canada before you compare dealer prices.
Why is gold falling today?
US data released on Thursday pointed the wrong way for gold. Gross domestic product grew 3.4% in the third quarter, above the 3.2% forecast. September inflation also accelerated: the PCE price index rose 3.6% year on year, with core PCE at 3.1%.
Strong growth plus sticky inflation strengthens the case for another Federal Reserve rate hike. The Fed held rates at 3.75%–4.00% on Wednesday, but the 10–2 vote included two officials who wanted a hike immediately. Traders now price about a 74% chance of a December hike, according to CME FedWatch. Gold pays no interest, so higher expected rates raise the cost of holding it.
Oil adds to the pressure. Crude climbed again after an attack on a tanker in the Strait of Hormuz, keeping energy-driven inflation fears alive. As UBS analyst Giovanni Staunovo noted, stronger US growth and higher oil prices together push the Fed toward further hikes — and gold lower. Silver fell harder, down 3.6% to about $50.50 an ounce.
Levels to watch
- $4,000: now resistance. Gold needs a daily close back above it to ease the selling pressure.
- $3,965: today's intraday low and the first line buyers must defend.
- $3,900: the next test if $3,965 gives way and December hike bets keep building.
These levels matter for Canadian pricing too. Every $10 move in spot gold changes the per-gram price dealers quote in CAD, on top of the exchange-rate effect. Use our gold calculator to value a coin or bar at today's rate before you visit a dealer.
What happens next?
The next big catalyst is the Federal Reserve meeting on December 8–9. A hike, or a firm signal of one, could extend the slide toward $3,900. A softer tone — or weaker US data before then — could help gold reclaim $4,000. Until December, expect sharp moves in both directions, and check the live price on the day you trade, not the price from the morning headlines.
Frequently Asked Questions
Why did gold fall below $4,000 again?
Hot US inflation (PCE 3.6%), stronger-than-expected GDP growth of 3.4%, and rising oil prices lifted expectations of a December Fed rate hike to about 74%. Higher expected rates hurt gold because the metal pays no interest.
Should I buy gold now or wait?
It depends on why you buy. For long-term investment, buying in small parts spreads risk better than one large purchase in a falling market. For jewellery or gifts, a lower rate helps, but wait for calmer prices if your purchase is not urgent. Never decide on one headline alone.