Wed Oct 22 07:40:00 UTC 2025: Okay, here’s a news article summarizing the provided text:

Gold Prices Plummet After Record Run; Analysts See Buying Opportunity

Global gold prices are reeling after experiencing their steepest single-day drop in over five years on Tuesday. Spot gold fell over 5%, marking the worst selloff since August 2020. On Wednesday, the downward trend continued, with spot gold down 0.4% at $4,109.19 per ounce, representing a fall of over 6% from the all-time high of $4,381.21 reached on Monday.

While domestic markets in India were closed for Diwali, analysts anticipate a sharp selloff when trading resumes. From a record peak of ₹132,294 per 10 grams, gold prices have moderated to ₹128,000 in the domestic market, down by over ₹4,000 or 3%.

The price decline is attributed to profit-taking following a period of strong performance, with gold delivering nearly 60% returns this year. Optimism surrounding potential resolutions in US-China and US-India trade relations has also contributed to a “risk-off” sentiment, further pushing gold prices down. Investors are awaiting the release of the September US consumer price index for insights into the Federal Reserve’s interest rate policy.

Despite the recent dip, some analysts remain bullish on gold’s long-term prospects. Ross Maxwell, Global Strategy Lead at VT Markets, noted that while the recent rally faced profit booking, broader bullish drivers remain intact. Harshal Dasani, Business Head at INVAsset PMS, believes we are in the midst of a third supercycle for precious metals, citing leveraged paper markets and depleting physical inventories. He suggests this dip presents a buying opportunity.

Looking ahead, Maxwell cautions that a stronger US dollar or rising real yields could lead to short-term corrections of 5-10%. He advises investors to adopt a disciplined approach, diversify their portfolios, and closely monitor US inflation data and Federal Reserve guidance.

Disclaimer: Investment decisions should be made after consulting with certified financial experts, considering the volatility of market conditions.

Read More