Spot gold falls below $3,900, silver drops 5.9% intraday.

October 30—Spot gold and silver prices dropped sharply. Spot gold fell below the $3,900 level, reaching $3,897.48 per ounce, down 3.08% on the day. Spot silver tumbled 5.90% intraday, quoted at $49.09 per ounce, breaking below the $50 threshold. Platinum dropped 4.22% to $1,425.20 per ounce.According to international media analysis, the Federal Reserve maintained interest rates unchanged at 3.75%–4.00% with a 10 to 2 vote on Wednesday, although two officials advocated for an immediate rate hike. In the third quarter, U.S. GDP grew by 3.4%, and the Personal Consumption Expenditures (PCE) inflation rate reached 3.6%, further strengthening market expectations for a Federal Reserve rate hike in December.Notably, this wave of gold and silver sell-offs was not driven by a stronger dollar or rising U.S. Treasury yields. Both the dollar and Treasury yields retreated that day, and after a sell-off in technology stocks, funds turned to the bond market. The sharp decline in gold and silver, despite the trend, indicates the market may be experiencing liquidity-driven selling, where investors are forced to liquidate highly liquid precious metal assets to cover losses in other assets.Meanwhile, the gold-silver ratio rose to 79.4, reflecting that silver's decline was significantly more pronounced than that of gold.