Overview
- Spot prices hit an all-time high near $4,381 per ounce on Monday before dropping roughly 7% intraday on Tuesday to around $4,085 at the lows.
- Tuesday’s reversal marked the steepest one-day percentage loss for gold in over 12 years, even as the metal remained near historically elevated levels.
- Traders pointed to profit-taking and early signs of crisis relief, including optimism about ending the U.S. government shutdown and renewed U.S.–China contacts, alongside a rotation into equities.
- Silver fell sharply as well, sliding by as much as about 9% and dipping below $50, reflecting broader pressure across precious metals.
- Despite the pullback, gold is still up dramatically for the year, supported by geopolitical risks, central-bank reserve shifts and concerns about currency debasement, though analysts warn of potential sharp corrections.