Gold prices experienced their steepest single-day drop in five years today (Tuesday), as investors booked profits following a record-setting rally.

Spot gold fell 6.8% to $4,082.35 per ounce, after reaching an all-time high of $4,381.21 the previous day. US gold futures for December delivery declined to $4,129.20 per ounce.

Spot Gold Hits Biggest Daily Loss

The recent surge in gold prices, which have risen about 60% this year, was driven by factors including geopolitical tensions, expectations of U.S. interest rate cuts, and increased central bank purchases. However, the strengthening U.S. dollar and improved market risk appetite contributed to the sell-off.

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BREAKING: Spot gold prices extend their decline to over -6% on the day, now on track for the biggest daily decline since April 2013.

The long overdue gold pullback has finally arrived. pic.twitter.com/xPEKXvF2Lm

— The Kobeissi Letter (@KobeissiLetter) October 21, 2025

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The metal is on track for its biggest single-day drop since April 2013, when prices fell sharply after peaking near $1,670 per ounce amid concerns about reduced central bank stimulus in the U.S. “Spot gold prices extend their decline to over -6% on the day, now on track for the biggest daily decline since April 2013,” The Kobeissi Letter shard at X.

Gold Fails Form New Higher High

The gold daily chart shows that the precious metal had been consolidating near its recent highs. Yesterday, it formed a bullish daily candle but failed to produce a new higher high. As of writing, today’s candle has appeared as a bearish engulfing pattern. If it closes below yesterday’s low, intraday selling pressure could dominate in the near term.

Silver, Platinum, Palladium Drop Significantly Today

Other precious metals also saw significant declines, with silver dropping 8.4% to $48.06 per ounce, platinum falling 7% to $1,523.30, and palladium decreasing 6.6% to $1,398.