After the sharpest decline in 5 years, world gold prices continued to fall, currently below 4,100 USD.
At the end of the trading session on October 22, the world spot gold price fell by 26 USD per ounce to 4,097 USD. This is the lowest level since the session on October 10. Previously, the market recorded the sharpest decline in 5 years on October 21, as investors took profits after a series of record increases.
World gold prices have fallen sharply in the past two sessions. Chart: Kitco
“Given the uptick over the past few weeks, we wouldn’t be surprised if investors take profits ahead of this week’s inflation numbers,” said David Meger, director of metals trading at High Ridge Futures. From a technical perspective, gold’s current support level is $4,005.
The US inflation report was supposed to be released on October 24, but was delayed due to the government shutdown. Analysts said that US core inflation remained at 3.1% in September.
Gold prices have risen 57% since the beginning of the year and have set new records. The market has been on the rise due to geopolitical tensions, economic uncertainty, forecasts of US interest rate cuts, strong buying power from ETFs and central banks. Gold tends to increase in a low interest rate environment.
Investors are now looking ahead to next week’s meeting between US President Donald Trump and Chinese President Xi Jinping. “We still expect gold and silver prices to accelerate in 2026. After a few corrections, investors are realizing that the precious metals’ momentum is still there,” said Ole Hansen, head of commodity strategy at Saxo Bank.
In the US stock market, key indexes all fell in the session on October 22. Investors remained concerned about US-China trade relations. Disappointing third-quarter profits from companies such as Netflix and Texas Instruments also caused the market to lose points.
The DJIA fell 0.7% to 46,590 points. The S&P 500 fell 0.5% to 6,699 points. The Nasdaq Composite lost 0.93% to 22,740 points.
Shares of semiconductor maker Texas Instruments fell nearly 6%. AMD lost more than 3%, and Micron Technology lost 2%.
Wall Street was also under pressure after US Treasury Secretary Scott Bessent confirmed that the White House was considering tightening software exports to China, a move that Trump had announced earlier this month.
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