Key Highlights

● December gold futures fell $89.60 to $4,060.40 an ounce.

● Silver dropped $2.70 to $55.01 as precious metals slid together.

● Treasuries rallied, and the 10-year yield fell below a key threshold.

● Newmont posted adjusted earnings of $2.20 a share and $1.9 billion in free cash flow.

Gold dropped to its lowest level in more than two months on Thursday, October 22. December gold futures fell $89.60 to $4,060.40 an ounce, according to one data source, while another put the close at $4,038.80, down $111.20. Market data described it as gold's lowest close since July.

The figures differed by source and timing, but the direction was clear: gold fell hard on a day when investors were otherwise seeking safety.

An unusual day for a haven

Gold is often bought when stocks fall and when bond yields drop, since lower yields reduce the opportunity cost of holding a metal that pays no interest. Thursday offered both conditions. The Nasdaq Composite fell 694 points to 26,008.86, and the 10-year Treasury yield closed back below a closely watched threshold for the first time since September 22.

Yet gold fell anyway. Market reports did not single out one trigger for the decline. The move came as a wide range of assets that had been popular this year were sold, including chip stocks, bitcoin and silver.

The selling extended across precious metals. Silver dropped $2.70 to $55.01. Gold miners also sank, with the VanEck Gold Miners ETF sharply lower at midday.

A de-risking session

Thursday's market was defined by investors cutting exposure to crowded trades. "The dominant market dynamic in recent weeks has been the unwinding of AI-related positions by hedge funds," one bank strategist said.

A major bank said its clients pulled a record $14.8 billion from single stocks. Bitcoin fell toward $81,000 in its biggest drop since June.

When investors rush to reduce risk broadly, assets that have run up strongly can be sold alongside losers to raise cash or rebalance portfolios. Gold has had a strong run, trading above $4,000 an ounce.

Other havens did hold up. The yen and Swiss franc were the top gainers among major currencies, while the dollar index was roughly flat. Treasuries rallied strongly.

The oil and rate backdrop

Gold's slide came despite rising geopolitical risk. Brent crude rose to $113.17, its highest since May 4, after Houthi attacks in Saudi Arabia and a media report that the US and Israel have plans to renew strikes on Iran after the November 3 midterms.

The Federal Reserve is also a factor. The Fed raised rates in September and meets October 27-28, with markets pricing about one more hike before year-end. Higher policy rates can weigh on non-yielding assets like gold.

Miners report

Newmont (NYSE:NEM), a major gold miner, reported third-quarter results after Thursday's close. It posted adjusted earnings of $2.20 a share, sales of $6.36 billion and free cash flow of $1.9 billion, and improved its 2026 all-in sustaining cost guidance to $1,520 an ounce. "We produced approximately 1.3 million attributable gold ounces, and generated $1.9 billion of free cash flow," CEO Natascha Viljoen said. The after-hours share reaction was not available.

Gold's Test at the 4,000 Mark

Gold traders will watch the Fed decision on Wednesday, October 28, and the September PCE inflation report on October 29. Developments in Saudi Arabia and Iran could revive haven demand. Friday's S&P Global PMIs and University of Michigan sentiment data, along with Newmont's share move on Friday, will offer the next clues on whether the selling in precious metals continues.