Gold tumbles in biggest daily drop in years as stunning rally comes to a halt

Core Viewpoint - Gold prices experienced a significant decline of 5%, marking the largest daily drop in over a decade, with futures hovering near $4,141 per troy ounce and spot gold dropping to as low as $4,082 [1][2] Group 1: Market Dynamics - The decline in gold prices is attributed to easing trade tensions between the US and China, a strengthening US dollar, and technical indicators suggesting overbought conditions [2] - Analysts suggest that the recent drop may represent a necessary correction after a substantial rally year-to-date, with gold having increased by 28% since mid-August [4][6] Group 2: Price Predictions and Investor Sentiment - Analysts from Bank of America maintain a bullish outlook on gold, predicting a peak of $6,000 per ounce by mid-2026, while Goldman Sachs has raised its price target for gold to $4,900 per troy ounce by the end of next year [7][8] - Despite the recent dip, investor sentiment remains optimistic, with some viewing the decline as a temporary setback rather than a long-term trend [3][4]