Gold Prices Fall Most Since 2013—Here's Why Metals Are Plunging

Core Insights - The value of gold experienced a significant drop of over 5%, marking the largest single-day decline in more than a decade, as investors retreat from a recent buying frenzy [1] - Silver and platinum also saw declines after substantial gains earlier in the year, indicating a broader sell-off in precious metals [2] Gold Market Analysis - Gold futures fell by 5.2% to approximately $4,130, with earlier losses reaching 6.3%, the largest intraday drop since June 2013 [1] - Analysts suggest that the market is undergoing a "technical correction" after a rapid expansion of investors seeking safer assets [2] Silver and Platinum Market Analysis - Silver and platinum futures have risen 60% and 66% respectively this year, but have recently declined by 6.7% and 7.2% [2] - Analysts warn of potential volatility in silver prices due to increasing liquidity and falling demand, despite its continued favor among investors [5] Economic Influences - The strengthening U.S. dollar, which rose by 0.4% on Tuesday, typically leads to lower gold prices as it makes bullion more expensive for overseas investors [3] - Economic and policy uncertainties, including tariffs and inflation, have driven metals' prices higher this year [6] Future Price Predictions - Bank of America has set a bullish price target for gold at $5,000 per ounce by 2026, while HSBC raised its 2025 target to $3,950 [4] - For silver, Bank of America increased its target to $65 per ounce, with expectations of continued price rises amid potential government shutdowns and interest rate cuts [5] Market Sentiment - Analysts expect more volatility and downside risk for silver compared to gold, which benefits from central bank demand [7] - Platinum's rise is attributed to strong demand from jewelers and automakers, indicating a diverse interest in precious metals [7]