AI-Summary – News For Tomorrow
After weeks of gains driven by inflation fears and US debt concerns, gold experienced a significant price correction. Tuesday saw the largest single-day sell-off since 2013, with prices dropping over 6% from a recent record high of $4,381.21. This was partially attributed to profit-taking by investors after a 25% surge in just two months. Other factors included reduced demand from India post-Diwali and a strengthening U.S. dollar. While gold rebounded slightly on Wednesday to around $4,141.48 per ounce, it remains significantly up year-to-date, outperforming other major assets.
News summary provided by Gemini AI.
After weeks of steady gains, Gold’s record-breaking rally has finally cooled off. Prices tumbled sharply on Tuesday, October 21, marking the biggest single-day sell-off in over a decade.
Gold price plunges over 6% after record highs, marking biggest one-day sell-off since 2013(Unsplash)
Gold price today
The gold price today rose modestly in early trade, recovering less than half a percent after the dramatic slide. At 1:46 a.m. ET Wednesday, spot gold was trading at $4,141.48 per troy ounce, up just 0.4%, per CNN.
Tuesday was another story. The metal dropped as much as 6.3% to $4,082.03 an ounce, just a day after touching an all-time high of $4,381.21. U.S. gold futures closed down 5.7% at $4,087.70 – the steepest fall since June 2013. Silver and platinum prices also followed the trend, sliding 6.7% and 7.2% respectively, according to Forbes. At 9:02 a.m. EDT, the gold rate today stood at $4,052.29 per ounce.
Why gold price fell?
Analysts say the gold sell-off came after a historic rally that had pushed prices to overheated levels. In just two months, gold spot prices surged about 25%, lifted by fears around U.S. debt, inflation, and the possibility of further rate cuts from the Federal Reserve.
After such a strong run, it’s no surprise investors wanted to take profits. During an interview with Kitco News, MarketGauge’s Chief Marketing Strategist, Michele Schneider, stated that everyone is talking about gold now. “I have to wonder if investors are piling in at the highs.”
Also read: Gold price rallies to a record as US-China tariff war concerns boost safe-haven demand
Other factors
Market watchers, CNN reported, also noted that demand from India, the second-largest gold consumer in the world, usually dips after the Diwali festival, as physical buying is reduced. A stronger U.S. dollar also added more pressure, making gold costlier for overseas buyers. Despite the drop, gold remains up over 50% for the year, outperforming major asset classes.
FAQs:
Why did gold prices drop this week?
Because investors took profits after a record rally, trade optimism boosted the dollar.
What is the gold price today?
As of 9:02 a.m. EDT, gold was trading at $4,052.29 per ounce.
When was gold’s last major sell-off?
The last comparable decline happened in April 2013.
