On Tuesday, the global gold price fell by more than 6%, its biggest daily drop since April 2013.
The plunge came after gold hit a record USD 4,382 an ounce on Monday.
Reasons for the fall: a stronger dollar and hopes of easing trade tensions
Tuesday’s broad sell-off in gold and equities came as the US dollar strengthened and optimism grew about easing US–China trade tensions. US President Donald Trump and Chinese President Xi Jinping are due to meet next week to discuss tariff disputes.
A rise that was too fast
According to experts, gold probably rose too quickly and beyond market fundamentals. For most of 2025 gold was on an upward trend, reaching USD 3,000 in March and USD 4,000 in early October. The latest rally began in late August and accelerated in recent weeks.
Despite successive records on global stock markets, gold — usually seen as a safe haven — kept climbing on speculative growth and high demand until the market entered a correction on 21 October.
Despite Tuesday’s fall
Gold has still risen about 55% since the start of 2025. Analysts stress that the correction may be a sign of natural market adjustment after the unprecedented surge of recent months, but the overall trend remains upward on an annual basis.
