FX.co ★ Gold Suffers Biggest Drop Since 2013

Gold plummeted over 5.5% to approximately $4,100 per ounce on Tuesday, marking its most significant daily decline since April 2013. This drop follows a record high of $4,382 reached on Monday. The price reduction was primarily driven by intensified profit-taking and a strengthening US dollar, while demand for safe-haven assets diminished as global sentiment showed signs of improvement. Optimism regarding the reduction of US–China trade tensions increased, with plans for Presidents Donald Trump and Xi Jinping to meet next week to discuss tariff disputes and prevent further escalation. Additionally, the conclusion of the seasonal gold-buying surge in India contributed to a decrease in physical demand. Concurrently, expectations rose that the US government shutdown could be resolved within the week, and markets anticipated the delayed release of US inflation data on Friday. Investors continued to factor in a 25-basis-point Federal Reserve rate cut expected next week, with a further reduction likely in December. Despite this recent downturn, gold remains up over 60% for the year, bolstered by expectations of continued Federal Reserve easing and sustained demand for safe-haven assets.