Gold and silver suffer historic one-day drop but most analysts say long-term uptrend remains
Oct. 21, 2025 5:57 PM ET
By: Carl Surran, SA News Editor
Gold and silver futures plummeted by the most in many years on Tuesday, in a selloff that some analysts said was a function of profit-taking but may not mark an end to a rally that has lifted prices to all-time highs.
Gold touched a fresh record high on Monday while silver climbed to its second-highest level ever before both metals retreated Tuesday, raising the question of whether the metal has "topped out" or merely encountered a "blip" before moving higher again, StoneX analyst Fawad Razaqzada said in a note.
"Some would argue, what took it so long? With so much buying lately, investors have finally started to take profit after the record-breaking run, either willingly or otherwise," according to the analyst, although it is "far too early to suggest that the broader bull trend has ended."
"While corrections are natural, it is worth pointing out that many investors missed out on the big rally. Soon, they may step in to buy the dip, which should keep the selloff contained," Razaqzada wrote.
Gold prices could withstand a 10% correction to ~$3,973/oz without affecting the long-term bullish narrative, Saxo Bank's Ole Hansen said in a social media post.
"The fundamental backdrop remains dominated by the same themes that propelled gold through successive record highs: a waning confidence in the old financial order leading to persistent central bank accumulation, renewed demand for ETFs from investors in the West on top of continued demand from Chinese households seeking alternatives amid a four-year long property market slump... and a gradual erosion of trust in fiat and fiscal management in the West," Hansen said.
"We don't believe this marks the beginning of a serious correction," Spartan Capital's Peter Cardillo said. "Instead, we view today's decline as a healthy pullback."
Gold's surge last week was driven partly by concerns over credit quality in the U.S. economy, which analysts said helped holdings of physically backed gold ETFs recording a massive fund inflow of $8 billion last week, the biggest weekly inflow in data going back to 2018, according to data from the World Gold Council.
"When you’ve got that much money quickly coming into the space, it's only natural to expect some of that money to leave as well when people have made a quick return," BMO Capital's Helen Amos said.
Meanwhile, the market absence of India, the world's second-biggest gold buyer, for the Diwali festival has drained the market of significant liquidity.
Front-month Comex gold ( XAUUSD:CUR) for October delivery lost $248.70/oz, or -5.7%, to $4,087.70/oz, its largest one-day dollar decline on record and biggest percentage decline since June 20, 2013, while front-month Comex October silver ( XAGUSD:CUR) fell $3.669/oz, or -7.2% to $47.450/oz, its biggest one-day dollar decline since September 23, 2011, and largest one-day percentage decline since April 4, 2025; for both metals, it was the lowest settlement value since October 10.
Shares of precious metals plunged across the board, including Coeur Mining ( CDE) -16.1%, Endeavour Silver ( EXK) -13.3%, Gold Fields ( GFI) -11.6%, Hecla Mining ( HL) -11.5%, AngloGold Ashanti ( AU) -11.3%, First Majestic Silver ( AG) -11.2%, Harmony Gold ( HMY) -11%, Kinross Gold ( KGC) -10.9%, Iamgold ( IAG) -10.8%, Eldorado Gold ( EGO) -10.4%, Alamos Gold ( AGI) -9.9%, Pan American Silver ( PAAS) -10%, Barrick ( B) -9.3%, Wheaton Precious Metals ( WPM) -9.1%, Newmont ( NEM) - the day's largest loser on the S&P 500 - -9%, Agnico Eagle Mines ( AEM) -8.5%. |
