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Gold Plunges From Record, Posting Biggest One-Day Drop in Over a Decade

Profit-taking accelerated after tentative signs of easing political risks.

Overview

  • After touching about $4,381 per ounce on Monday, gold fell roughly 6–7% intraday on Tuesday to lows near $4,085, while silver slid almost 9%.
  • Traders cited profit-taking alongside optimism over a potential U.S. government shutdown resolution and renewed U.S.–China contacts, with a stronger dollar also flagged as pressure.
  • Stocks recovered and major cryptocurrencies, including Bitcoin and Ethereum, ticked higher as investors rotated back toward risk assets.
  • Despite the setback, gold remains dramatically higher for 2025—variously reported at roughly 48% to more than 60% year to date—after a rally driven by geopolitical tensions and some central-bank reserve shifts.
  • Forecasts remain split, with calls for further gains such as Goldman Sachs’ $5,000 target and Jamie Dimon’s $5,000–$10,000 scenario contrasted by warnings of severe corrections, and prices edged up modestly early Wednesday.