Gold Suffers Worst October Since 2008 as Tech Stock Selloff Intensifies Liquidity Shock

Odaily reports: According to Gate data, spot gold recorded its worst October performance since 2008. In October 2008, gold prices fell about 17%, while this October's decline has reached approximately 6.7%, significantly weaker than the typical fluctuation range of -3% to +7% seen in most prior years. Last Friday, gold prices plummeted 3.6% in a single day, hitting a one-year low.

This round of decline was mainly driven by two key factors: first, oil prices triggered inflation concerns, which in turn reinforced rate hike pricing—this is a fundamental pressure; second, the tech stock selloff forced investors to sell gold, which tends to be a one-off liquidity shock. As oil prices fell sharply on Monday following news of US-Iran negotiations, the first fundamental pressure driver has eased somewhat, which may be part of the reason gold prices saw a rebound on Monday.(