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Gold’s frenzied rally ends with largest sell-off in over a decade
Gold prices dropped more than 5% after a 50% rally in 2025 as investors took profits amid easing US-China trade tensions and reduced demand following India's Diwali festival.
- On Wednesday, gold prices gained modestly after the precious metal's rally halted on Tuesday when prices tumbled more than 5%, following a Monday record high of $4,381.21 per troy ounce.
- Market analysts say rising US debt and political uncertainty drove the gold rally, but demand eased after Diwali in India, reducing market support.
- On Tuesday, Gold's more-than-50% surge in 2025 outpaced price jumps tied to September 11, the 2008 financial crisis and the Covid-19 pandemic, while silver and platinum also slumped sharply.
- Profit-Taking accelerated after US gold futures settled down 5.7% at $4,087.70, marking the steepest decline since April 2013, as optimism about easing US-China tensions and a stronger dollar prompted investors.
- Despite renewed tensions, trade representatives are expected to meet late this week ahead of a planned meeting between Chinese leader Xi Jinping and US President Donald Trump next week, which could shape demand and prices.
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The splendor of the gold has been cracked: after an unprecedented sell-out, prices for gold and other precious metals rush into the depths. However, according to the Saxo Bank, it is not a panic – it is a necessary position adjustment. Still, this is not a real risk event, but rising credit spreads, a strong dollar or systematic sales [...] The post gold sell-out is a risk event? – Saxo is waving off, but warns first on financial marketwelt.de.
Coverage Details
Total News Sources12
Leaning Left1Leaning Right1Center7Last UpdatedBias Distribution78% Center
Bias Distribution
- 78% of the sources are Center
78% Center
11%
C 78%
11%
Factuality
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