Tashkent, Uzbekistan (UzDaily.uz) — The global metals market came under significant pressure in October, with gold falling below US$4,000 an ounce and silver losing 18.5% over the month. Industrial metals also retreated from recent highs as inflation risks, expectations of tighter Federal Reserve policy and a sell-off in equity markets, particularly technology stocks, weighed on investor sentiment.
Gold fell to around US$3,930 an ounce, dropping below the psychologically important US$4,000 threshold. The metal lost approximately 5% over the month.
Silver performed even worse, with prices declining to around US$49.8 an ounce, marking an 18.5% monthly fall. A stronger US dollar, elevated yields on US government bonds and expectations of further monetary tightening by the Federal Reserve have increased pressure on the precious metal. Geopolitical tensions have also ceased to provide the level of support that precious metals previously received.
The conflict in the Middle East has kept oil prices elevated, adding to inflation concerns. Investors are now focusing on the results of the US midterm elections and the latest employment data, both of which could influence expectations ahead of the Federal Reserve's December meeting.
Platinum and palladium also experienced a difficult October. Platinum fell to around US$1,420 an ounce, losing approximately 18% over the month, while palladium declined to about US$930 an ounce, with its monthly losses exceeding 20%.
Uncertainty surrounding demand from the automotive industry has added to the pressure on both metals. Higher interest rates and energy costs could weigh on vehicle sales, while the growing adoption of electric vehicles is gradually reducing demand for traditional catalytic converters.
The outlook for the platinum market has also changed. A surplus of approximately 265,000 ounces is now expected in 2026, although accumulated stocks remain relatively low following several years of supply deficits.
Copper prices declined to around US$6.38 per pound, losing approximately 3% over the month. However, the metal remains up 30% year on year.
Investor sentiment has become more cautious about the prospects for artificial intelligence and large-scale investment in data centres following the sell-off in technology stocks.
At the same time, copper inventories held in London Metal Exchange warehouses rose to a four-month high, easing some of the earlier concerns about supply shortages.
Nevertheless, longer-term factors continue to support copper demand. Mining output in Chile remains constrained, while the energy sector, electricity grids and technology infrastructure continue to require substantial volumes of the metal.
Aluminium fell to around US$3,045 per tonne and remains close to multi-month lows. The market is gradually moving away from earlier concerns about a severe supply shortage.
Producers in the Middle East are restoring capacity, China is increasing production and exports, and additional supplies are entering the market from Indonesia. These developments have reduced the risk of a shortage that supported prices during the summer.
Zinc has proved more resilient, trading at around US$3,790 per tonne. Its relative strength is supported by limited supply, high energy costs for producers and comparatively low inventory levels.
Overall, October demonstrated that even supply shortages do not guarantee sustained gains across the metals market. Precious metals are currently driven primarily by Federal Reserve policy and the US dollar, while industrial metals are more dependent on actual demand, inventory levels and the outlook for the global economy.
Longer-term supportive factors, including the expansion of energy infrastructure and the development of artificial intelligence, remain in place.
However, a sustained recovery in metals prices will require greater confidence that high interest rates and elevated energy costs will not lead to a significant slowdown in global demand.
