Global financial markets experienced a sharp sell-off during the final trading week of October, with gold, silver, US technology stocks and cryptocurrencies coming under significant pressure.

Spot gold plunged below $3,900 per ounce, hitting an intraday low of $3,870. The precious metal fell as much as $135.22 from its session high, representing a maximum intraday decline of 3.36%. Spot silver also broke below the psychologically important $50 level, sliding to a low of $49.025, with losses reaching 6.12% at their worst.

Meanwhile, the Nasdaq Composite dropped as much as 2.3%, while Intel shares plunged approximately 28%. Other major semiconductor stocks, including AMD and Nvidia, also suffered steep losses, placing Wall Street's technology sector under intense selling pressure.

Perhaps most surprisingly, gold failed to attract safe-haven demand despite escalating tensions in the Middle East, surging oil prices and a sharp decline in US equities. Instead, the traditional safe-haven asset became one of the hardest-hit markets.

Investors are increasingly concerned that rising energy prices could fuel another wave of US inflation, potentially forcing the Federal Reserve to raise interest rates again in December. At the same time, major technology companies continue to commit enormous amounts of capital to AI infrastructure without demonstrating sufficiently convincing returns on investment, raising fresh doubts about the sustainability of the artificial intelligence boom.

Deteriorating geopolitical conditions in the Middle East have added another layer of uncertainty to global markets. On Thursday, The Wall Street Journal reported that a senior US military commander had briefed President Donald Trump on potential military options. With the US midterm elections approaching on November 3, investors are increasingly concerned that Washington could resume military operations against Iran once voting concludes.

As October draws to a close, global financial markets are heading into the first trading week of November amid heightened uncertainty. The US midterm elections on November 3 could reshape the balance of power in Congress for the next two years, with significant implications for fiscal policy, trade relations and foreign policy expectations.

Against the backdrop of ongoing US-Iran tensions, markets will be particularly sensitive to any indication that Washington may pursue further military action following the elections.

 
Last Week's Market Review
US Equities
US technology stocks bore the brunt of Friday's sell-off. The Nasdaq Composite fell approximately 2.3% during the session, while the S&P 500 declined 1.4%. The Dow Jones Industrial Average dropped around 307 points, or 0.6%.

Investors continued to rotate out of highly valued technology stocks and into more defensive sectors, including consumer staples and healthcare.

By Friday's session, the Nasdaq was on track to lose nearly 5% for October, while the S&P 500 was heading for a monthly decline of approximately 0.6%. In contrast, the Dow Jones remained positioned to gain more than 2% for the month.

This divergence highlights a broader shift in investor positioning, with market participants reducing exposure to expensive growth stocks and reallocating capital towards traditional industries offering more stable earnings and predictable cash flows.

Spot Gold
The sell-off in precious metals accelerated sharply towards the end of last week.

Spot gold plunged from an intraday high of $4,026.45 to $3,870, with the maximum reported decline reaching 3.36%. Gold's cumulative losses for October exceeded 6%, putting the metal on course for a second consecutive monthly decline.

What makes this downturn particularly unusual is that it occurred against a backdrop of rising risk aversion.

US technology stocks and cryptocurrencies were under heavy selling pressure, while the threat of further military escalation in the Middle East continued to intensify. Nevertheless, gold failed to attract meaningful safe-haven inflows.

One possible explanation is that some investors were forced to liquidate gold holdings to offset losses in equities and digital assets, meet margin requirements or increase cash reserves. This may have contributed to precious metals falling alongside traditionally risk-sensitive assets.

Spot Silver
Silver fell below $50 per ounce last week, reaching its lowest level since November 2025.

Spot silver declined from $52.220 to $49.025, representing a maximum drop of 6.12%. The metal has now lost approximately 18% over the month, significantly underperforming gold.

The breakdown below the key psychological $50 level has further weakened market sentiment. Concerns over industrial demand, combined with broader selling pressure across precious metals, suggest that silver could remain vulnerable in the near term.

US Dollar Index (DXY)
The US Dollar Index was little changed on Friday, trading around the 102 level.

Disappointing earnings from major technology companies, together with renewed concerns about the sustainability of the AI-driven equity rally, prompted investors to seek safer assets.

Despite these headwinds, the dollar gained approximately 0.5% in October.

As global equities and precious metals came under simultaneous pressure, the greenback benefited from a degree of safe-haven demand. However, declining US Treasury yields limited its upside potential.

The benchmark 10-year Treasury yield fell by approximately 1.4 basis points at one stage on Friday, reflecting renewed inflows into US government bonds.

EUR/USD
EUR/USD retreated from its recent highs above the psychological 1.1200 level towards the 1.1160 region ahead of the weekend.

The sharp reversal was driven by renewed US dollar strength amid persistent risk aversion. Weaker-than-expected German inflation data also added to downward pressure on the euro, accelerating the correction.

USD/JPY
USD/JPY declined for a third consecutive session on Friday, falling towards the 157.00 area before attempting a modest recovery.

Investors continued to assess the outcome of the Bank of Japan's latest monetary policy meeting, at which policymakers left interest rates unchanged, broadly in line with market expectations.

GBP/USD
GBP/USD fluctuated around the 1.3400 level on Friday, giving back part of its earlier advance towards a multiweek high near 1.3430.

The pound came under some pressure as the US dollar continued to recover. Nevertheless, expectations that the Bank of England could raise interest rates next week appeared to provide underlying support for sterling.

AUD/USD
AUD/USD edged higher during Friday's trading session, approaching the 0.7035 level.

The Australian dollar benefited from stronger-than-expected domestic consumer price inflation data, which reinforced market expectations that the Reserve Bank of Australia could raise interest rates at its upcoming policy meeting.

WTI Crude Oil
Crude oil prices climbed towards $104 per barrel last week, reaching their highest level since September 15, when prices touched a four-month peak of $105.83.

Escalating geopolitical tensions renewed concerns over potential disruptions to global oil supplies.

Elsewhere, reports indicated that Ukrainian forces had attacked a refinery in Russia's Samara region, while Moscow launched another round of overnight strikes against Ukraine.

These developments heightened concerns over global energy supply security and added to the geopolitical risk premium embedded in crude prices.

Oil gained approximately 15% over October, supported by persistent supply concerns and rising geopolitical uncertainty.

Bitcoin and Cryptocurrencies
Bitcoin fell towards $77,000 last week, reaching a six-week low following reports that Binance had suffered a $6.3 billion cyberattack.

The reported security breach further undermined sentiment across an already fragile cryptocurrency market, which remained under sustained selling pressure.

Bitcoin declined for a second consecutive session, while total cryptocurrency liquidations reached approximately $1.5 billion over a 24-hour period.

According to reports, the incident affected approximately $6.3 billion in assets at Binance, the world's largest cryptocurrency exchange, prompting the company to temporarily suspend deposits and withdrawals while conducting an internal investigation and security review.

The episode added to concerns over digital asset security and amplified the broader risk-off sentiment affecting speculative investments.

US Treasury Yields
The benchmark US 10-year Treasury yield remained broadly steady around 4.93% last week, hovering near a seven-week low.

Disappointing earnings from major technology companies triggered widespread selling across US technology stocks and revived doubts about the sustainability of the AI-driven market rally.

As a result, investors increased their exposure to relatively safe government bonds, providing support for Treasury prices and putting downward pressure on yields.

Although the Federal Reserve left interest rates unchanged on Wednesday, the CME FedWatch Tool indicated that markets continued to assign approximately a 72% probability to a December rate hike.

For October as a whole, the benchmark 10-year Treasury yield declined by approximately 36 basis points.

 
Market Outlook: November 2–6, 2026
Global financial markets are entering a potentially volatile week as investors prepare for a series of major political, economic and corporate developments.

The AI-driven investment theme has already come under significant pressure following disappointing earnings from Alphabet. Markets now face a concentrated series of potential catalysts, including the US midterm elections, earnings announcements from major technology companies and a full slate of US employment indicators.

The Federal Reserve's decision to hold interest rates steady reflects ongoing uncertainty surrounding the inflation outlook.

At the same time, central banks around the world remain cautious as they assess labour market conditions, while geopolitical risks involving Russia, Ukraine, the United States and Iran continue to complicate the investment environment.

Uncertainty surrounding domestic economic stimulus measures adds another dimension to the global outlook.

With several major events converging, markets are entering a period of heightened volatility. Two key questions will dominate investor attention: whether the AI investment theme can withstand mounting pressure from corporate earnings and potential regulatory changes, and how upcoming US labour market data may reshape expectations for Federal Reserve monetary policy.

Tuesday, November 3: US Midterm Elections and RBA Rate Decision
The US midterm elections will take place on Tuesday, November 3, with investors closely watching whether the Democratic Party can regain control of Congress.

The outcome could materially affect expectations surrounding AI regulation, data centre approvals, fiscal stimulus and broader economic policy, making the election one of the week's most significant political risk events.

On the same day, the Reserve Bank of Australia will announce its latest interest rate decision.

Markets broadly expect the RBA to raise the cash rate by 25 basis points to 4.85%, marking a second consecutive month of monetary tightening.

Investors will pay particular attention to the central bank's assessment of inflation persistence, labour supply constraints and the potential need for further policy tightening.

US Employment Data: The Week's Final Major Catalyst
The week will culminate in the release of the US October employment report, including nonfarm payrolls, the unemployment rate and average earnings growth.

Together, the ADP employment report, weekly jobless claims and official nonfarm payrolls will provide a comprehensive picture of US labour market conditions.

These releases will be critical in assessing whether the Federal Reserve's decision to pause its tightening cycle remains justified.

Stronger-than-expected employment or wage growth could revive expectations for further rate hikes, while weaker data may raise concerns about slowing economic activity.

Consequently, the employment releases could significantly influence US Treasury yields, the dollar, equities and precious metals.

 
Conclusion
The coming trading week is likely to be shaped by four major themes:

US labour market data: Employment growth, unemployment and wage inflation will be crucial in determining the outlook for Federal Reserve interest rates.
US midterm elections: The results could reshape market expectations for fiscal policy, technology regulation, trade and broader government priorities.
Third-quarter earnings from major AI and technology companies: Investors will closely examine whether substantial AI-related capital expenditure is translating into sustainable revenue growth and investment returns.
Geopolitical developments in the Middle East and the Russia-Ukraine conflict: Further escalation could increase volatility in energy markets, inflation expectations and global risk sentiment.
Overall, the first trading week of November is expected to be a news-heavy period marked by elevated volatility.