The precious metal loses almost 9%. A few days ago, the price of gold reached a record high. UNN reports with reference to Bloomberg.
Details
Gold is in one of the steepest price declines in several years.
Spot gold prices fell by 6.3%;
As for silver, prices fell by 8.7%.
The range of gold price decline, according to various data, is a record for 5-12 years. Shares of gold mining companies also fell sharply:
Barrick Mining, Newmont, and Agnico Eagle Mines fell by more than 8% on Tuesday morning.
However, it is important to note that despite the fall on Tuesday, gold in general is still up by approximately 56% since the beginning of 2025. The trend of gold price growth in the current period is also a record. This is the largest annual percentage increase since 1979.
Thus, today's fall only sharply stopped the growth that led to both metals - gold and silver - reaching record highs last week.
Reasons for fluctuations in the price of precious metals
Gold has risen sharply due to bets that the US Federal Reserve will make at least one significant rate cut by the end of the year, Bloomberg explains. The price also rose due to the so-called "debasement trade" - when investors abandon sovereign debt and currencies to protect themselves from rampant budget deficits.
However, at the beginning of this week, there was a small pause regarding the above factors. Today and yesterday, the price level of gold was also determined by the "prospect" of trade negotiations between China and the US after weeks of threats and attacks from both sides. Among other factors are overloaded technical issues and a strengthening dollar.
Recall
Gold prices fell slightly on Tuesday, October 21, as investors took profits after updating a record high, amid expectations of further interest rate cuts by the US Federal Reserve.