On Tuesday, October 22, the price of gold showed the sharpest daily drop in five years, as investors took profits after record growth.
The spot price of gold fell 6.8% to $4,082.35 per ounce after reaching a historic high of $4,381.21 a few days earlier. US gold futures for December fell to $4,129.20 per ounce.
The recent jump in gold prices, which has seen an increase of about 60% this year, was driven by geopolitical tensions, expectations of lower interest rates in the United States, and an increase in central bank purchases. However, the strengthening of the US dollar and increased market risk tolerance contributed to the sell-off.
Spot gold prices declined by more than 6% during the day, and they are now on track for their biggest daily drop since April 2013, the Kobeissi Letters account says.
Prices for other precious metals have also dropped significantly.: silver fell by 8.4% to $48.06 per ounce, platinum — by 7% to $1,523.30, and palladium — by 6.6% to $ 1,398. Despite the decline, long-term forecasts for gold are optimistic.
The largest investment banks are optimistic about future gold prices. Source: Reuters/Perplexity
Goldman Sachs raised its December 2026 price target from $4,300 to $4,900 per ounce, citing steady inflows of funds from ETFs and demand from central banks. Bank of America predicts that by 2026 the price of gold will reach $5,000 per ounce with an average price of $4,400.
Peter Schiff interpreted this fall as an opportunity to sell worthless bitcoins and buy real gold.:
Gold dropped by more than $200. It's a solid decline, but all this volatility is happening against the background of the fact that the gold price is still above $4,100, which was a record high last week. Bitcoin benefits from this sale, creating another window for bitcoiners to sell "fool's gold" and buy the real thing.