Overview
- Gold plunged roughly 5–6% on Tuesday after peaking near $4,380 per ounce, silver fell up to 8.7%, and prices whipsawed on Wednesday around $4,090–$4,150.
- Analysts cited profit-taking, stretched technicals, a firmer dollar, easing U.S.–China trade tensions, and the end of India’s festive buying as key drivers of the reversal.
- The lack of weekly CFTC positioning data during the U.S. government shutdown reduced market transparency, while record activity in gold ETF options highlighted elevated volatility.
- Risk appetite rotated elsewhere as Bitcoin and Ethereum rose while gold slid, and shares of gold miners and broader equities softened on valuation concerns.
- Despite the setback, many strategists still see a constructive medium-term path for bullion, with consolidation around the $4,000 area and forecasts reaching about $4,600–$5,000 next year dependent on Fed policy and inflation.