Gold’s record-breaking rally came to an abrupt halt Tuesday, as prices for the precious metal fell by the most in more than a decade. The sell-off marked a sharp pause in a year-long surge fueled by inflation concerns, geopolitical turmoil, and record central bank purchases.
Spot gold fell as much as 6% to a low of $4,090.97 per troy ounce before recovering slightly, slipping almost $300 from Monday’s all-time high of $4,380.89. The drop was gold’s largest one-day percentage decline since June 2013 and its biggest dollar fall on record. U.S. gold futures slid 5.4% in New York trading, settling around $4,100 per ounce.
The metal’s dramatic pullback followed nine consecutive weeks of gains that had pushed it to successive record highs. Despite Tuesday’s losses, gold remains up 57% so far this year, underscoring the strength of its run amid global economic uncertainty.
Silver, which has closely tracked gold’s ascent in recent months, also tumbled. The price of silver fell more than 7% to about $48.40 per ounce, after touching multi-year highs earlier this week.
Analysts said the downturn was largely due to investors cashing in on substantial profits and a short-term easing of risk sentiment. Analysts said optimism over a possible U.S. trade deal with China and signs of progress toward ending the government shutdown could lead to a temporary pause in gold’s rally in the coming weeks.
The pullback also rippled across equity markets. Shares of gold miners slumped sharply, with the VanEck Gold Miners ETF (GDX)—a global benchmark for mining stocks—dropping 9.4%. Newmont Corp. (NEM), the world’s largest gold producer, fell 9%, leading declines in the S&P 500 index.
While the sell-off marked a striking reversal for one of 2025’s hottest trades, analysts say the broader uptrend in precious metals remains intact.