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Metal trader Tai Wong said market volatility is prompting short-term investors to book profits, while silver also fell over 6%, dipping below $50 per ounce
Lower interest rates make precious metals like gold and silver more appealing as safe investment options. (Representative/AP)
Gold prices experienced a sharp decline on Tuesday, falling by 5 percent to $4,120 per ounce after reaching a record high of $4,381 on Monday. This marks the largest one-day drop in gold since 2020. Despite this, gold remains at elevated levels, boasting a gain of approximately 60 percent this year.
Profit Booking And Market Volatility Increased
Experts suggest that investors are now engaging in profit booking following such a rapid rise. Metal trader Tai Wong noted that market volatility is encouraging short-term investors to secure profits. Similarly, silver prices plummeted by over 6 percent, dropping below $50 per ounce.
Investors Now Eyeing US Inflation
Attention has now shifted to US inflation data, which has been delayed until Friday due to the government shutdown. Traders are eager to discern future interest rate trends. Typically, lower interest rates make precious metals like gold and silver more appealing as safe investment options.
Will The Gold Rally Stop Here?
David Morrison, senior market analyst at Trade Nation, said, “Gold’s long-standing bullish momentum seems to be slowing. The key question is whether this is a normal correction or the start of a downtrend.”
Analysts indicate that the market’s future direction will hinge on the depth and duration of this decline. It is a period for investors to proceed with caution and prudence.
United States of America (USA)
October 22, 2025, 12:32 IST
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