Gold's biggest drop in 2025: What are the reasons
Gold just had its sharpest one-day fall of 2025, sliding 6% to $4,113.05 per ounce after hitting a record high earlier this month.
The main reasons? A stronger US dollar, investors waiting to see what the Federal Reserve does with interest rates, profit-taking, and easing US-China trade tensions.
Why is gold losing its shine?
If you're curious about investing or just following big money moves, gold usually acts as a safe haven when things get shaky.
But right now, easing US-China tensions and a strong dollar are making gold less attractive worldwide—even though traders are still very active in the market.
What's next for gold?
A lot depends on what the Fed decides and how US-China talks go this week.
If gold drops below $4,000, we might see more losses.
Still, long-term drivers like central bank buying and global uncertainty mean gold isn't out of the game yet.