Overview
- Spot prices fell to about $3,988 per ounce on Oct. 27 and European quotes on Oct. 28 showed further easing in euro terms, extending last week’s reversal.
- The drop follows an all-time high of $4,381 on Oct. 20 after a roughly 50–60% year-to-date surge, leaving gold still markedly higher for 2025 despite the pullback.
- Traders cited a stronger US dollar and signs of a US–China trade rapprochement as immediate pressures, with markets also watching a Federal Reserve decision widely expected to deliver a 0.25 percentage point cut.
- Profit-taking, technical selling and algorithmic flows were reported to have amplified intraday swings, even as bargain hunters stepped in from Singapore to the US and Japan.
- Analysts point to continued central-bank buying—about 1,000 tonnes last year, per the World Gold Council—and ongoing geopolitical risks as medium-term supports, while silver mirrored the retreat after strong year-to-date gains.