The decline is seen in the context of a stronger dollar, overbought conditions and weaker demand in India.
The gold price falls on Tuesday evening to 4,121 dollars per anointedanointedCorresponds to 31.1 grams. An ounce is the global standard for weighing gold and silver. .
The decrease of 6.3 percent is the sharpest price drop since April 2013, according to Bloomberg.
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$1,000 in six weeks
The fall comes after the price of gold has set a number of records so far this year. The last was on Monday, when the price rose to $4,381.52.
The price drop on Tuesday evening is explained, among other things, by the fact that the dollar has strengthened over the past 24 hours, which makes the purchase of precious metals more expensive for many investors.
Another factor is that the Indian festival of lights, Diwali, where a lot of gold is traditionally bought, is over, according to the Financial Times.
– It is starting to foam at the tops, says analyst Nicky Shiels in MKS Pamp to the newspaper.
She believes the main reason for the fall is “extremely overbought conditions” and that the rise in gold is beginning to mature.
– Just the fact that the price has gone up by $1,000 in six weeks… it suggests that the prices are too high, we are in the stratosphere, adds Sheils.
The silver price follows suit, falling to $48.38 per ounce. The 8.7 percent decline is the biggest drop since 2021, according to Bloomberg.
The price of silver, like the price of gold, has reached new records throughout much of 2025.
Up 55 percent since the New Year
It is not unusual for the gold price to fall back at regular intervals, according to Bjarne Schieldrop, head of analysis at SEB.
– There have been corrections between 150 and 200 dollars in the past year, although the price has risen sharply since August last year, he told E24 earlier this month.
Including the fall on Tuesday evening, the price of gold has nevertheless risen by just over 55 per cent since January.
Several large banks also do not rule out the price going up further. Among them is Goldman Sachs, which has increased its price estimate to $4,900.
Bank of America does not rule out that the price could reach $5,000, but has pointed out that the high price “sends some technical signals” that momentum is about to wane, according to Business Insider.
