Core Viewpoint - The prices of gold and silver have experienced a significant drop due to geopolitical factors and profit-taking by investors, marking the largest single-day decline in over a decade for gold and the largest since 2021 for silver [1][3]. Price Movements - As of October 21, international spot gold prices fell over 6%, dropping below $4100 per ounce, while silver prices fell over 8%, dropping below $48 per ounce [1][3]. - Earlier in the week, gold prices had surged over 2.5%, reaching a historical high of $4381.29 per ounce before the sharp decline [5]. Market Analysis - Since the beginning of the year, gold prices have increased by over 50%, and silver prices have risen nearly 70%, driven by heightened geopolitical tensions that led investors to seek safe-haven assets [3][9]. - Analysts suggest that if market sentiment continues to stabilize, precious metal prices may face further corrections [3]. Domestic Market Impact - Following the spike in gold prices, domestic gold jewelry prices also increased, with notable rises in prices from various brands [6][7]. Future Outlook - HSBC forecasts that gold prices could continue to rise, potentially reaching $5000 per ounce by 2026, driven by strong central bank purchases and ongoing fiscal concerns in the U.S. [10]. - UBS predicts that increasing political and trade uncertainties will continue to support gold prices, with expectations of reaching $4700 per ounce by the first quarter of next year [11].

Core Viewpoint - The gold and silver markets experienced significant declines on October 21, with gold prices dropping sharply due to profit-taking by investors after a recent surge driven by expectations of further interest rate cuts by the Federal Reserve and strong safe-haven demand [7][9]. Group 1: Market Performance - As of October 21, gold prices fell by 6.3%, dropping below $4100 per ounce, with a decline of over $240 within a span of seven hours [2]. - By 11 PM, gold was reported at $4112.37 per ounce, marking a decrease of 5.58%, while COMEX futures were at $4145 per ounce, down 4.92% [2]. - Concurrently, silver also saw a significant drop, with London silver reported at $48.18 per ounce, down 8.02%, and COMEX silver futures declining by 7.69% to $47.44 per ounce [4][5]. Group 2: Market Analysis - Analysts attribute the recent pullback in gold prices to profit-taking after a rapid increase in prices, which was fueled by geopolitical tensions and expectations of monetary easing [7][9]. - Tim Waterer, a chief market analyst, noted that profit-taking and a reduction in safe-haven flows contributed to the pressure on gold prices, but any pullback is likely to be viewed as a buying opportunity if the Fed maintains its current easing path [9]. - The market is currently experiencing a high level of volatility, with indicators suggesting that trading may be overheated, which could lead to further fluctuations in gold prices [9][11]. Group 3: Future Outlook - Hudson Attar from Bridgewater expressed uncertainty about the future trajectory of gold prices, suggesting that the potential for a decline is greater than for further increases unless high-net-worth investors continue to significantly allocate to gold [10]. - HSBC's commodity outlook report indicates that the upward momentum for gold could persist until 2026, driven by strong central bank purchases and ongoing fiscal concerns in the U.S., with a target price of $5000 per ounce [11].