After reaching a historical high, gold prices fell by 6.8%

On Tuesday, October 22, gold prices recorded the sharpest single-day drop in five years, as investors took profits after a record rally.

The spot price of gold fell by 6.8% to $4082.35 per ounce after reaching a historical high of $4381.21 a few days earlier. December delivery gold futures in the U.S. dropped to $4129.20 per ounce.

The recent surge in gold prices, which have increased by approximately 60% this year, was driven by geopolitical tensions, expectations of U.S. interest rate cuts, and increased central bank purchases. However, a stronger U.S. dollar and higher market risk appetite contributed to the sell-off.

Spot gold prices dropped more than 6% during the day, now heading for the largest daily decline since April 2013, according to the account “Kobeissi Letters.”

Other precious metals also saw significant declines: silver fell 8.4% to $48.06 per ounce, platinum down 7% to $1,523.30, and palladium decreased 6.6% to $1,398. Despite the pullback, long-term forecasts for gold remain bullish.

Major investment banks maintain an optimistic outlook on future gold prices. Source: Reuters/Perplexity

Goldman Sachs raised its December 2026 target price from $4300 to $4900 per ounce, citing steady inflows from ETFs and demand from central banks. Bank of America forecasts gold prices could reach $5000 per ounce by 2026, with an average price of $4400.

Peter Schiff interpreted this drop as an opportunity to sell “useless” bitcoins and buy real gold:

“Gold fell by more than $200. A solid drop, but all this volatility happens while gold is still above $4100, which was last week’s record high. Bitcoin benefits from this sell-off, creating another window for bitcoiners to sell the ‘fool’s gold’ and buy the real thing.”

See also: "Crypto Treasury Firms Face Stock Market Bans in India, Hong Kong, and Australia"

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