Gold Suffers Biggest Crash Since 2013 as Prices Plunged to $4,000 Before Modest Rebound
Gold’s price took a steep tumble between Oct. 21 and Oct. 22, falling about 8% from recent record highs above $4,400 per ounce and erasing roughly $2.43 trillion in market value — its sharpest two-day drop since 2013.
Spot gold fell 6.3% on Oct. 21 alone, then extended losses by another 1% to 2% the following day before stabilizing near $4,000 to $4,130 per ounce.
The correction followed a 55% rally in 2025 fueled by economic uncertainty, job losses, and trade war fears. Analysts now say the decline may be a healthy reset for the metal’s overheated run-up.
Several factors fueled the selloff. Gold became technically overbought after months of massive gains, prompting significant profit-taking. A 1.5% rise in the U.S. dollar made gold more expensive for international buyers, while optimism over renewed U.S.-China trade talks reduced demand for safe-haven assets.
It was expected to happen.
Crazy to see gold drop 8% in just two days after such a massive 2025 rally. Feels like a classic case of profit-taking and overbought conditions. A stronger dollar and trade talk optimism probably didn’t help either. Market cycles at work
Trade talk and a lowering of the narrative on Russia/Ukraine. Of course, that could change in a heartbeat but it does bring certainty.
Absolutely, a shift in narrative on Russia/Ukraine can ease safe-haven demand for gold. Market sentiment flips fast, though—any new tension could reverse this in a flash.
It seems like if the war goes much longer, it will be nothing but drones and AI. Of course, I not being serious since millions are dying on both sides.
just wow! Im already speechless