Overview
- On October 21, spot gold fell to about $4,114 and December Comex to roughly $4,131, declines of around 3.9% to 5% for the biggest daily drop since August 2020.
- The setback followed a 2025 surge of roughly 60% that included an intraday peak near $4,381 and a gain of about $1,000 over six weeks.
- Market commentary links the slide to dollar strength, early signs of détente in U.S.–China trade talks, and missing positioning data during the U.S. government shutdown.
- Analysts largely frame the move as a technical correction, with Citi expecting the shutdown’s resolution and any U.S.–China announcements to guide a 2–3 week consolidation.
- Despite the pullback, a new Goldman Sachs report projects gold could reach about $4,900 by end-2026, alongside strong investor interest in exchange-traded commodities and mining shares.