Gold falls 9% from its record high as the US dollar strengthens

On 6 November 2025 gold traded at around USD 4,008 an ounce; although it recovered slightly from earlier losses, it remained under pressure, about 9% below October’s record of USD 4,381.

The US dollar index reached about 100 — its strongest level since May — making gold more expensive for foreign buyers and putting considerable pressure on the precious metals market.

Fed Chair Jerome Powell’s relatively hawkish stance reduced expectations of aggressive rate cuts; however, Goldman Sachs Research still expects a December cut to continue easing from the current 3.75–4% range.

The ongoing US government shutdown — now the longest in the country’s history — has disrupted official economic data releases, forcing the Fed and investors to rely on private-sector indicators such as the ADP report, which showed 42,000 jobs added in October.

The combination of these factors — dollar strength, Fed policy uncertainty and the government shutdown — has led investors to move away from non-yielding assets such as gold. Silver has also fallen, to USD 48 an ounce.