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Gold prices plummet
The gold sector is experiencing significant volatility following the steepest price drop in 12 years with analysts weighing in on future prospects.
(AI video summary)
This video was created on 22 October 2025 for IG audiences by ausbiz.
Gold sector faces volatility amid price drop
The gold sector experiences significant volatility following the steepest decline in gold prices in 12 years. This movement comes despite economic uncertainty that had previously driven the precious metal to record highs.
Gold prices have plummeted more than 6%, dropping to approximately $4110 an ounce, following a previous peak of $4381. This plunge was attributed to investors taking profits after expectations of United States (US) interest rate cuts and high safe-haven demand had supported the metal’s rally earlier.
Market analysis and reactions
According to analysts, gold prices are expected to stabilise in the coming weeks, considering potential developments such as the US government’s shutdown resolution and the progress of the US-China trade deal. Alongside gold, other precious metals like silver saw a 7% drop to $48 an ounce, while platinum and palladium also declined by over 5%.
Investment outlook
For long-term investors, gold stocks still appear undervalued despite recent slides. While gold can experience long periods of inactivity, periodic surges in value offer substantial profit potential.
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