Gold Tumbles Over 5%, Tests $4,000 Support

Gold plunged more than 5% from recent record highs in its worst single-day drop in years, extending losses this week as investors booked profits and technical selling pushed prices to test the key $4,000 support level. Traders and analysts cited a firmer U.S. dollar, profit-taking ahead of delayed U.S. CPI data, weaker physical demand after Diwali and technical unwind around options expiries as near-term headwinds. Safe-haven flows tied to the U.S. government shutdown and geopolitical risks limited the decline somewhat, but the selloff hit local markets — for example, Pakistani gold rates fell — and prompted talk of capital rotating into assets like bitcoin. Markets are watching high-level U.S.–China trade talks and an upcoming APEC leaders’ meeting, while analysts warn that resistance near $4,179 and support around $4,000–$3,900 will determine whether the longer-term bullish case for gold holds.