Spot gold prices plunged by as much as 6%, falling to around $4,105 per ounce — the steepest drop since 2013. Meanwhile, silver prices also tumbled more than 8%, marking the biggest single-day decline since 2021.
This sell-off occurred as trade tensions between Washington and Beijing eased, the U.S. dollar strengthened, and technical indicators signaled overbought conditions.
Earlier, on October 17, when gold prices fell more than 1.5% in a short period — a rare move during the recent rally — many investors took the opportunity to “buy the dip.” This mild correction occurred as both gold and stocks hit record highs in October.
Meanwhile, at Bảo Tín Mạnh Hải, gold ring prices, though slightly lower, remained high at VND 152 – 153 million per tael (buying – selling). At Bảo Tín Minh Châu, gold ring prices were still the highest on the market, ranging from VND 154.4 – 158.3 million per tael (buying – selling).
Domestic gold prices declined in tandem with global prices. Early this morning (Vietnam time), spot gold hovered around $4,048 per ounce, down more than $313 per ounce compared to the previous trading session.
“This is only a temporary pullback in gold’s long-term uptrend,” said Tom Essaye, founder of Sevens Report Research, in an interview with Yahoo Finance on October 22.
According to Essaye, the fundamental drivers supporting gold remain intact:
“Inflation is still elevated, real interest rates remain low, geopolitical tensions have not eased, and political turmoil in the U.S. continues. All these factors create a ‘bullish cocktail’ for gold.”
Since mid-August, gold prices have surged by as much as 28%, driven by net purchases from central banks and strong inflows into gold ETFs. Investors continue to turn to the precious metal as a safe haven amid trade tensions and the flight from fiat currencies.
Michele Schneider, Chief Strategist at Marketgauge.com, recently told Yahoo Finance:
“The only thing that could reverse gold’s uptrend would be a sudden and significant decline in global debt — something that has never happened — and a world that truly enters an era of peace.”
Despite the sharp decline in the latest session, Wall Street remains optimistic about the long-term outlook for the precious metal in the coming years.
Analysts at Bank of America have recently reiterated their “long-term buy” recommendation for gold, forecasting that gold prices could peak at $6,000 per ounce by mid-2026.
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