Gold tumbled over 5% in early October 2025, dropping from a record $4,381 to $4,036 amid profit-taking and a stronger dollar, though still up 50% for the year.

Gold prices plunged over 5% in early October 2025, hitting a record high of $4,381 before dropping to around $4,036 amid widespread profit-taking and a stronger U.S. dollar. The sell-off, the steepest since 2011, followed months of surging demand driven by geopolitical tensions, inflation fears, and central bank purchases. Easing U.S.-China trade tensions and improved risk appetite reduced gold’s safe-haven appeal, while technical overbought conditions and a government shutdown disrupting market data heightened volatility. Silver also fell sharply. Despite the correction, gold remained up 50% year-to-date, supported by long-term demand and expectations of Federal Reserve rate cuts.