Gold price falls again: Why the price is plummeting – and what experts advise
After a rapid rise throughout the year and a new all-time high in mid-October, the price of gold has recently fallen sharply. Currently, the value of one troy ounce (approximately 31.1 grams) is just over $4,000 – just over a week ago, it was more than $4,350 . This continues the correction that has been observed since mid-October.
A troy ounce is a unit of measurement for precious metals such as gold or silver. It corresponds to approximately 31.1 grams of pure metal. Gold prices worldwide are quoted in US dollars per troy ounce because this standardized unit has become internationally accepted.
Gold was at times more expensive than ever before in 2025. Since the beginning of the year, the price had increased by more than 60 percent, reaching a new all-time high of $4,381. In recent days, there has been a noticeable countermovement: The price initially fell below $4,200 and continued to fall to just over $4,000 on Monday morning. Other precious metals, such as silver, also declined significantly.
Despite the losses, gold remains expensive by historical standards – the decline is therefore seen in economic circles as more of a “breather” after an extraordinary rally.
The decline in the gold price is due to several factors, including a more relaxed market environment . Fluctuations in the gold-pegged US dollar can further amplify these movements.
In addition, the trade conflict between the US and China has recently eased somewhat: Both countries have agreed on a framework for a trade agreement. This is creating optimism in the markets and reducing demand for safe-haven investments like gold. Silver, platinum, and palladium have also lost value.
Profit-taking also plays a role: After the record prices of recent weeks, many investors are selling parts of their holdings, and modern, automated trading systems can further accelerate such movements.
Financial markets are now turning their attention to the next interest rate decision by the U.S. Federal Reserve (Fed) . Another interest rate cut of 0.25 percentage points is expected for Wednesday (October 29, 2025). Lower interest rates can generally support gold because interest-bearing investments become less attractive. Currently, however, the strength of the dollar is outweighing this effect, which continues to put pressure on the gold price for the time being.
For investors who have invested in gold, the current decline is no reason to panic. The price has stabilized at a fairly high level after the extreme increases of the past few months.
Those using gold as a long-term hedge should take short-term fluctuations in stride. Those looking to enter the market for the first time can take advantage of the price decline, but should be aware that the market remains volatile and reacts strongly to geopolitical or economic developments.
Whether investing in gold is worthwhile now depends on many factors. The price can continue to fluctuate depending on how the economy and interest rates develop. Those who view gold as a hedge should hold it for the long term and only in limited quantities.
A precise forecast is difficult . Economic experts expect further fluctuations in the short term, but in the long term, high government debt, geopolitical tensions, and continued demand from central banks could benefit the gold price. Political developments, such as the meeting between US President Trump and Chinese President Xi, could also have an impact.
One thing is certain: gold remains a mirror of global uncertainties and market fluctuations. It is valuable primarily because of its rarity. Only a small portion is actually used in industry. Over 90 percent is either processed into jewelry or stored as an investment in safes and vaults.
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