Why is Gold Down So Much Today?
Gold fell sharply today after days of hitting record highs. The drop started late Tuesday and carried into Wednesday trading across global and local markets.
Prices had climbed fast this year. Now investors are taking their profits. Many traders feel gold had gone too high too quickly. When prices jump that fast, small signs of risk often push people to sell.
A stronger US dollar added more pressure. When the dollar rises, gold becomes expensive for buyers using other currencies. That usually weakens demand. The dollar index rose nearly 0.4 percent this week, which weighed on gold prices everywhere.
Global trade news also changed the sentiment. US President Donald Trump said he expects a positive trade deal with China soon. That lifted confidence in the stock markets. When markets feel safer, investors move money away from gold since it is seen as a safe-haven asset.
The sell-off was heavy. Spot gold in global trade dropped nearly 5 to 6 percent. Silver fell even more, over 6 percent at one point. This was the biggest fall since 2020. Analysts say it looked like a normal correction after months of strong buying.
In India, gold prices also crashed. On October 22, 24-carat gold dropped to around Rs 1,27,200 per 10 grams. The 22-carat rate fell to about Rs 1,16,600 per 10 grams. The fall was about Rs 3,000 to Rs 3,400 in one day. This came just after Diwali when gold demand was high.
Many expect the price to stay shaky for a while. Investors are waiting for US inflation data and the next Federal Reserve meeting. If the Fed cuts rates next week, gold might find support again since lower rates usually help gold hold its value.
For now, the drop is driven by short-term factors like profit booking, a firm dollar, better global mood, and easing safe-haven demand.
It does not mean the long gold rally is over. The metal is still up more than 50 percent since the start of the year. But the surge paused today as traders locked in profits and waited for clearer economic signals.
Disclaimer
Market data, prices, and financial insights mentioned here are for informational purposes only and may change without notice. This article does not constitute financial or investment advice. Readers should consult certified financial advisors before making any investment decisions. Prices and market movements referenced are based on the latest available information at the time of publication.
