Gold price today is witnessing its steepest decline in more than 12 years, going down as much as 6.3% to near $4,000 an ounce. This fall in prices follows a remarkable rally that had lifted prices roughly 55–57% this year. Silver and platinum also experienced sharp losses. Market analysts say the sell-off is a technical correction after months of sustained gains, driven primarily by profit-taking, a stronger US dollar, easing geopolitical tensions, and renewed optimism around US-China trade negotiations.
“The rally had pushed gold to technically overstretched levels. Most traders were long and sitting on strong averages, it was a good time to take profit,” analysts say.
Gold’s surge earlier this year was further fueled by safe-haven demand amid inflation concerns, central bank buying, strong retail investor interest, and market expectations of Federal Reserve rate cuts.
What Analysts Say About Gold Price Fall
Investor sentiment shifted further following reports that US President Donald Trump is scheduled to meet Chinese President Xi Jinping in South Korea next week, raising hopes of a trade deal. The prospect of reduced trade tensions has encouraged risk-on sentiment, drawing funds away from precious metals.
Analyst say that this one-sided rise in gold was unsustainable. Over the past four months, it surged from around USD 3,300 per ounce to USD 4,400 per ounce, nearly a USD 1,100 gain. In India, 24-karat gold prices rose from Rs 75,000 per 10 grams to Rs 1.3 lakh per 10 grams over the last year. Analysts now say that the fall in price now is a correction and was expected.
BREAKING: Gold price now down 8% over the past two days, with over $2.5 trillion in value wiped from market capitalization.
— The Spectator Index (@spectatorindex) October 22, 2025
Gold Market Reaction Today
Gold futures for December (GC=F) fell $29.90 (-0.73%) to $4,079.20, while spot gold struggled to maintain its position above the $4,000 mark. A resurgent US Dollar Index (DXY) and positive developments in U.S.-China trade discussions have put additional pressure on prices.
The price of gold keeps falling and you can sell on the pullback. pic.twitter.com/t4uyZSHopC
— Helen–XAUUSD (@Helen_xauusd) October 22, 2025
Analysts forecast that gold may correct another USD 50–100, but there’s little chance of a deeper fall because central banks worldwide continue to accumulate reserves. It is believed that strong international demand still supports bullish fundamentals for the metal.
Also Read: Microsoft CEO Satya Nadella Earns Almost a Whopping $100 Million in FY25 – What’s his Net Worth
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
