Global Gold and Silver Prices Fall, Lithium Prices Weaken Amid Ample Iron Ore Supply

en.Wedoany.com Reported - On October 30, the global mineral products market continued its divergent trend. The international spot gold price fell 3.5% to approximately $3,881 per ounce, hitting its lowest level since October 2025; silver dropped 6.5% to about $49, falling below the $50 threshold. Meanwhile, the lithium market continued to face price correction pressure, while the Asian iron ore market was affected by both ample seaborne supply and weak Chinese steel demand.

In the precious metals market, gold has cumulatively declined about 30% from its historical high of approximately $5,595 in January 2026. Inflationary pressure from rising oil prices reinforced market expectations that the United States would maintain relatively high interest rates, with U.S. dollar and bond yield trends weighing on gold. Liquidity demand triggered by the global tech stock selloff and margin calls by some investors also intensified precious metals selling. Silver, in addition to being affected by interest rate factors, also faced pressure from weakening industrial demand expectations.

The lithium market likewise entered a correction phase. Benchmark Mineral Intelligence's Q3 price review published on October 2 showed that China's battery-grade lithium carbonate ex-works price fell 20.8% during the quarter to 127,750 yuan per tonne; lithium hydroxide prices dropped 19.2% to 120,000 yuan per tonne; and Australian spodumene concentrate FOB prices declined 23.5% to $1,780 per tonne. The price declines concentratedly reflected changes in inventory expectations and uncertainty in battery raw material market demand.

On October 12, S&P Global Commodity Insights noted in its quarterly assessment of the Asian lithium market that lithium raw material supply from Zimbabwe is expected to increase in late Q4, and some Australian spodumene capacity is also recovering, posing potential pressure on Asian lithium product prices. However, a Fastmarkets analysis during the same period found that upstream lithium salt inventories had fallen to their lowest level since April 2024, indicating that market price weakness coexists with inventory tightening in certain segments.

In the iron ore market, S&P Global research published on October 20 showed that seaborne iron ore supply in Asia remained ample, and Chinese steel mills implemented production cuts due to weak profit margins, suppressing raw material procurement demand. Price spreads between medium-grade ores narrowed, and premiums for lump ore and pellets declined from previous highs, reflecting steel mills' increased sensitivity to raw material costs.

Sucden Financial's Q4 metals market report further noted that Singapore iron ore futures prices fell to approximately $90 per tonne in mid-October. Rising iron ore inventories at Chinese ports, continued arrivals of imported resources, and weak demand in the real estate and construction sectors jointly limited price rebounds. The institution expects the iron ore market to continue facing downward pressure in Q4, though seasonal restocking may cause periodic fluctuations.

Based on the above data, while all four mineral products came under pressure during the same period, the primary drivers of price changes differed. Gold and silver were more affected by interest rate expectations, financial market capital flows, and changes in industrial demand; lithium price adjustments were related to inventories, raw material supply, and battery supply chain procurement expectations; iron ore was mainly affected by changes in steel output, steel mill profits, and seaborne resource supply. Future market performance will still depend on changes in respective supply-demand fundamentals and macroeconomic conditions.