After a record-setting rally over the past week, commodities traders went all in on a massive gold sell-off on Tuesday. The price of the precious metal fell down to $4,118 an ounce, after a high of $4,381.52 an ounce just one day before. Meanwhile, silver is trading at $48.76 an ounce in midday trading at the time of this writing, down from $54.35 last week.
At the time of this writing, the live gold spot price for an ounce of gold in U.S. dollars (USD) is $4,133.13, a gram of gold is $132.88 and one kilogram of gold is $132,883.22, according to JM Bullion.(Gold spot price can fluctuate by the second.)
For some context, that means gold prices have decreased the most they have in four years, and silver is seeing its biggest drop since early 2021, per Bloomberg.
This is a stunning reversal from last week, which saw gold and silver prices spiking as investors sought out a “safe haven” from more volatility in the stock market due to overall economic uncertainty.
The two main ways to invest in gold and silver are by buying the physical metals, or through futures contracts.
What’s causing the abrupt change?
Analysts say it’s not just one thing causing the slump. They point to the current economic and political climate, including a prolonged government shutdown; upcoming U.S. and China trade talks amid Trump’s escalating tariff wars with Beijing; and softer than expected numbers from the US Consumer Price Index (CPI), which are expected to be released by end of week.
The shutdown is delaying some economic and jobs data from coming out as government workers are currently furloughed, while at the same time, there have been mass firings.
Meanwhile, a standoff with Beijing over rare earth minerals resulted in President Donald Trump threatening a “massive increase of tariffs on Chinese products,” seemingly triggering a market sell-off.
However, a retreat from gold and silver could mean the market is feeling more secure—and therefore, a good sign investors aren’t running for cover.
