Panic for Americans who dove into 'safe haven' gold as it has worst day in a decade
After soaring to fresh records this week, gold prices suffered a spectacular fall on Tuesday — their biggest one-day drop since 2013.
The precious metal plunged 5.7 percent to around $4,109 an ounce as investors cashed in profits, the dollar strengthened, and safe-haven demand faded. Silver fell even harder, down 7.2 percent to under $47.50, while platinum also slipped.
It marked an abrupt end to one of the wildest rallies in years.
Gold had climbed more than 50 percent in 2025, driven by fears over inflation, geopolitics, and market turmoil. That surge was initially driven by big banks and hedge funds.
But even everyday Americans joined the rush — with trading platforms reporting a spike in interest in the metal. Others have been buying mini gold bars at Costco.
Bret Kenwell, an investment analyst at eToro, told the Daily Mail last week: 'Trading volume in gold hit a multi-year high on the metal's way to its eighth straight weekly gain.'
Many of those late-arriving investors could now be left holding the bag as the rally turns.
After warning investors on Friday to 'wait awhile' before buying, billionaire investor Bill Gross — known as the 'Bond King' — said the metal is now 'exhibiting characteristics of meme and momentum stocks.'
Gold has been on a historic pricing tear this year. But on Tuesday the price had its biggest fall in a decade
Billionaire investor Bill Gross — known as the 'Bond King' — warned that gold is now behaving like a meme stock, saying its surge has been driven as much by hype and speculation as by fundamentals
Gold is down more 5 per cent on the day, and nearly two percent over five days
Gross, who co-founded PIMCO, told Business Insider that gold's surge has been driven as much by hype and speculation as by fundamentals, making it more volatile and prone to a sharp drop.
He added that gold remains 'sensitive to short-term interest rates,' referring to how the metal tends to climb when borrowing costs fall.
Other experts said rally went too far, too fast. 'Gold has entered a zone of unsustainable advance,' analysts at Renaissance Macro Research wrote in a weekend note.
They said it was hard to gauge when to take profits.
While gold stumbled, Wall Street looked ready to steal the spotlight again. Stocks rallied as big-name companies rolled out stronger-than-expected earnings, propelling markets back toward record territory.
The Dow jumped more than 300 points, the S&P 500 inched within a fraction of its all-time high, and blue chips including General Motors and RTX surged after upbeat results.
GM shares leapt 16 percent after the automaker raised its forecasts and said it was scaling back losses in its electric-vehicle business.
Analysts say the shift shows investors are moving from 'fear trades' to growth bets.
Everyday Americans who followed Wall Street traders and jumped into the gold rush may now be facing steep losses
Costco's 1-ounce 24-karat bars were around $2,000 in December 2023. This week they were above $4,000, doubling the investment in two years
With roughly one-fifth of S&P 500 firms reporting results this week, optimism over corporate profits is giving Wall Street new momentum — even as the Fed watches for signs of inflation and a possible slowdown.
For gold bugs, the selloff may prove temporary. But for now, the metal's glitter has dulled — just as the stock market begins to shine again.
