Gold's Record Rally Suffers One-Day Snapback

Gold’s 2025 rally, up roughly 50–60% year-to-date and sending spot prices to record highs, suffered a violent one-day snapback of about 5–6% (with silver down ~7.5%), marking its largest daily drop in years. The selloff reflected profit-taking, crowded leveraged positions and mechanical fund selling, compounded by a firmer dollar and easing U.S.–China tensions ahead of a planned Trump–Xi meeting. Analysts are split: some call the move a temporary correction given continued structural support from central bank buying, ETF inflows, Chinese demand and prospective Fed rate cuts; others warn gold is overbought and could fall toward roughly $4,000 without renewed buying. Technical analysts see the decline as possibly completing a short-term cycle low with potential reversion to $4,200–$4,300 and a resumption toward higher multi‑month targets if key resistance is cleared. Investors are watching upcoming U.S. CPI data and geopolitical developments for the next major catalysts, while miners and ETFs have shown mixed responses.