Why Did Gold’s Price Drop Sharply? And How Long Will Bitcoin Keep Falling?

This week, the price of gold recorded its sharpest single-day drop in five years, falling on Monday from $4,381 per ounce to an intraday low of $4,082 — a 5.7% decline. The fall ended the record-breaking rally that had peaked on Monday, October 20.

This week, the price of gold recorded its sharpest single-day drop in five years, falling on Monday from $4,381 per ounce to an intraday low of $4,082 — a 5.7% decline. The fall ended the record-breaking rally that had peaked on Monday, October 20.

At the same time, Bitcoin lost about 2% of its value, dropping from $110,000 to a critical support level at $108,000, while the correlation between digital and physical safe-haven assets climbed to 0.85.

Suki Cooper, an analyst at Standard Chartered, described the move as a “technical correction” following a record $34.2 billion inflow into the precious metals market, which pushed it into overbought territory.

Profit-taking accelerated as the U.S. Dollar Index strengthened by 0.4%, making gold more expensive for international buyers and reducing its appeal compared to competing assets.

Silver dropped even more sharply — 8.7%, marking its worst daily decline since February 2021, while platinum fell by 5–7%, confirming a broad-based correction across the precious metals market.

Bitcoin’s decline mirrored gold’s move, though to a lesser degree — about 2% — testing local support near $108,000, which aligns with the late-August lows.

For now, the 200-day exponential moving average continues to provide support, suggesting that the bullish trend remains intact. However, a break below this range could pave the way for further downside and a potential retest of the $100,000 level.

Many analysts are monitoring technical indicators, including money supply (M2), gold performance, and stock-to-flow models, to gauge Bitcoin’s next move. Most of them predict a significant rebound, especially after the liquidation of a large number of leveraged long and short positions.

Editor: Jerg Wos

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