Gold Crashes 5%: Investors Stunned By Largest Drop Since 2020
Gold prices plummeted 5-6.3% on October 21, 2025, marking the steepest single-day decline since 2020. The drop from record highs above $4,375 to roughly $4,114 shocked markets, driven by profit-taking, dollar strength, and easing geopolitical tensions.
Despite the crash, Gold remains up over 50% year-to-date, underscoring the volatility inherent in even the strongest uptrends. Silver mirrored the selloff with a 7-8% slide as metals markets faced broad liquidation.
ETF outflows surged as Leveraged positions unwound rapidly. The scale of correction rivals previous major pullbacks in precious metals history, serving as a stark reminder of the asset class's dual nature as both safe haven and speculative vehicle.