Doubts over AI spending triggered a rout in technology stocks and broad deleveraging across asset classes this week ended October 30, weighing on the dollar and metals, while crude oil extended gains towards six-month highs on elevated Gulf and Iran escalation risk.
The dollar index closed with modest gains as elevated oil prices, stronger-than-expected US GDP growth and a hotter inflation print kept the path open for another Fed rate hike this year. Still, greenback stayed below 102, as gains in the yen and euro and lower Treasury yields capped the greenback. The 10–2 vote suggests that views within the FOMC remain divided, while Fed Chair Kevin Warsh’s indication that future decisions will depend on incoming data has increased the importance of each economic release.
Wall Street's weakness came as disappointing technology earnings and concerns over returns on AI-related capital expenditure prompted investors to reduce exposure. The Dow Jones and S&P 500 declined approximately 1 percent over the week, while the tech-heavy Nasdaq fell around 2.4 percent and remained nearly 8 percent below its October 6 peak.
Precious metals were also caught in the broad deleveraging. Spot Gold declined about 3 percent to close at $3,875 an ounce, its lowest level since October 2025 and roughly 30 percent below the January record of $5,595, with price action consistent with concerns over the sustainability of AI-related investment and a sharp selloff in technology stocks raised the risk of investors liquidating precious metals positions to cover losses elsewhere.
Gold and silver posted monthly declines of 7 percent and 19 percent, respectively. Silver underperformed, falling 9 percent to $49 an ounce and breaking below $50 for the first time in 11 months, reflecting its greater sensitivity to industrial demand and growth concerns. The gold to silver ratio rose to approximately 79, an 11-month high. Elevated oil prices reinforced the downside by sustaining expectations of tighter monetary policy.