Gold futures plummeted sharply. In two days, prices fell from $4,398 to $4,065 per ounce — minus 8% from peak levels. Shares of the largest gold miners, including Barrick, dropped by more than 1%. According to UBS and Goldman Sachs, the decline was caused not by fundamental factors, but by a technical correction and increased volatility.
Investors are taking profits
After a rapid rise, the market has finally cooled down. In two days, gold lost almost 8%, marking the steepest drop since 2013. On Tuesday, the metal fell by 5.74%, and on Wednesday it dropped another 1.06% to $4,065.40 per ounce.
The decline also hit miners. Shares of Barrick and other companies continued to fall as traders actively took profits after the longest rally of the decade.
Correction, not a reversal
UBS believes this is not the start of a new trend. Analyst Wayne Gordon explained that the drop is due to technical factors: a slowdown in momentum and increased volatility. ‘We believe this is a correction, not a fundamental reversal,’ he said.
Despite the pullback, gold remains the leader of the year. Since the beginning of 2025, prices have risen by 54%, and in October alone — by almost 5%. UBS emphasizes that the drivers of growth remain the same: inflationary pressure, tariff risks, political uncertainty, and disputes over the independence of the Federal Reserve System.
The dollar strengthens, ‘devaluation bet’ loses steam
The drop in gold coincided with the rise of the dollar. The dollar index gained almost 2% over the month, outperforming the S&P 500. This signals that some investors are returning to cash, reducing their share in real assets.
Over the week, the dollar rose by 0.3%, while gold lost 3%. For those betting on a weaker dollar, this was a painful signal.
Volatility rises, but reasons remain
Goldman Sachs notes that gold’s volatility relative to the S&P 500 has reached its highest point since 2020. This means fluctuations could become even stronger. But analysts believe the factors supporting the metal remain in place.
Inflation risks, loose central bank policies, and geopolitical threats have not gone away. Therefore, experts believe the current decline is just a pause in a long-term upward trend. The gold rally seems to have taken a short break. But the growth scenario is still in play.
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