Gold Price Drops Again. What’s Halting Its 9-Week Winning Run.
Oct 24, 2025 04:48:00 -0400 by Patrick O’Donnell | #Precious Metals
The gold price suffered its largest drop in more than 12 years Tuesday. (dreamstime)
Key Points
- Gold futures contracts decreased 0.9% to $4,108.90 an ounce in early trade, with a weekly decline of 3.7%.
- Despite recent drops, gold remains up 56% in 2025, driven by central-bank buying and anticipated lower interest rates.
- A meeting between the U.S. and Chinese leaders on Oct. 30 may reduce demand for safe-haven assets like gold.
The price of gold was dropping again at the end of a turbulent period for the precious metal as it stood poised to end a nine-week winning streak.
After suffering its largest one-day drop in more than 12 years Tuesday—falling 5.7%—the gold price rebounded in yesterday’s session but fears about overbuying seemed to return early Friday after a record-breaking run this year that has sent the price soaring to record highs.
Created with Highcharts 9.0.1Gold Continuous ContractSource: FactSetAs of Oct. 24, 4:45 p.m. ET
Created with Highcharts 9.0.1Oct. 19Oct. 244,0004,0504,1004,1504,2004,2504,3004,3504,400$4,450
Gold futures contracts were down 0.9% to $4,108.90 an ounce in early trade. The precious metal is down 3.7% for the week so far but remains up 56% in 2025—driven by a central-bank buying spree and the prospect of lower interest rates from the Federal Reserve.
“Technical indicators had shown the metal was heavily overbought since early September, while volatility surged as traders rushed to hedge against further swings,” wrote MUFG analyst Soojin Kim.
The confirmation that U.S. President Donald Trump and China’s leader Xi Jinping will meet on Oct. 30 may have affected sentiment around gold as it boosted hopes of easing trade tensions between the world’s two biggest economies.
Kim said the move “could reduce demand for safe-haven assets.” Adding: “Investors are now turning their attention to the upcoming U.S. inflation data for clues on monetary policy.”
The Bureau of Labor Statistics is scheduled to publish the consumer price index for September on Friday at 8:30 a.m. Eastern time. This is a somewhat special release amid the continuing government shutdown to ensure the Social Security Administration has the data it needs to calculate inflation-adjusted benefit payments.
Write to Patrick O’Donnell at patrick.odonnell@barrons.com