TechFlow, on October 21, according to Jinshi Data citing the Financial Times, gold prices plunged 6% on Tuesday, marking the biggest single-day drop since April 2013. This historic rally in gold has paused temporarily as India's Diwali gold-buying season comes to an end. After hitting a peak of $4,381 per ounce on Monday, gold sharply fell to $4,082 on Tuesday, widely seen by the market as a long-overdue correction. The historic surge this year accelerated in recent weeks, with a 25% gain in just the past two months.
"The market is showing signs of a bubble, and the main catalyst is an extremely overbought condition—the rally is peaking," said Nicky Shiels, head of metals strategy at MKS PAMP SA. "A $1,000 surge within six weeks indicates that gold is significantly overvalued, and we are now at irrational highs." Analysts pointed out that the recent dollar rebound, combined with missing futures positioning data due to the U.S. government shutdown, contributed to this most severe drop in gold prices since 2013.
