Skip to content
October 21, 2025Cryptopolitan logoCryptopolitan

Gold drops 5%, silver slides 8% after rally loses steam

Gold and Silver have garnered a lot of attention in recent weeks as they showed an impressive rally that led the precious metals to break several record highs. However, the upside has run out of steam this week as silver shed around 8% and gold dropped 5%. The two precious metals have been enjoying a rally driven by a combination of factors, including a safe haven demand on the back of escalating geopolitical tensions and fiscal ￰0￱ had reached a new peak beyond $4,390 an ounce, a new ￰1￱ the other hand, silver reached a new peak of $54. However, the trade had become quite overcrowded and was running a little hot considering both markets’ levels.

Gold’s mix of profit-taking and shifting expectations The sudden correction has wiped over $200 off the price of gold within hours and dragged silver down more than $3. Analysts describe the sell-off as a mix of profit-taking and shifting expectations about the US economic ￰2￱ and Silver are insanely down ￰3￱ waiting in front of gold stores was indeed a warning ￰4￱ alone has almost lost the entire BTC market cap today ￰5￱ money will rotate into crypto and shares. Don't be ￰6￱ — CryptoParsel (@derparsel) October 21, 2025 Traders who had built large positions during gold’s climb appeared to lock in gains ahead of upcoming US inflation ￰7￱ the same time, a firmer dollar and modest rebound in bond yields removed some of the urgency to hold non-yielding assets such as bullion.

However, the sell-off was not triggered by any single event. Instead, it reflected a confluence of stretched valuations, reduced safe-haven demand, and a temporary pullback in speculative buying that had supported the metals since ￰8￱ of the catalysts for the pullback has been the perception of easing tensions between China and the ￰9￱ reported by Cryptopolitan, Trump said that he expects to make a trade deal after meeting with President Xi Jinping at a Pacific Rim summit in South Korea later this ￰10￱ days ago, Trump surprised markets by announcing that he would impose 100% tariffs after China said it would limit its rare earth exports. However, the confirmation of willingness to resolve the issues has been enough to remove some of the risk premia in markets, at least for now.

Additionally, market data show that the correction extended beyond spot ￰11￱ of gold and silver miners fell sharply, and metals-linked exchange-traded funds recorded heavy ￰12￱ impact was more pronounced in silver, whose market is smaller and more volatile, leaving it prone to amplified swings when liquidity ￰13￱ watch historical cycles According to analysts, the only thing that will determine where gold and silver prices are headed is the price ￰14￱ data show that whenever silver prices reached $50, or got close to it, they saw silver trade above $50 for only a short period of ￰15￱ that end, two weeks from now, if silver prices are above $50 an ounce, then the marketplace can start to believe both gold and silver are entering new, longer-term price ranges that will continue well above what the price history of the past 50 years has shown.

However, suppose silver drops back below $50 in the next couple of ￰16￱ that case, history will again repeat itself, and that would suggest gold and silver are due for extended downside price corrections and even bear markets farther down the road, to continue the historical cycle of boom and bust seen in all raw commodity ￰17￱ steady as investors gain confidence Stocks are steady, taking comfort from a possible easing of trade tensions between the US and China. Tokyo’s Nikkei rose to a record high in Asia and dented the yen. A broad rally sent all three major US stock indexes to a sharply higher close overnight, with chip stocks hitting a record ￰18￱ S&P 500 rose above the flat ￰19￱ Dow Jones Industrial Average added 1% as earnings reports from blue-chip companies poured ￰20￱ tech-heavy Nasdaq Composite was also roughly ￰21￱ Europe, the STOXX 600 rose 0.1% to trade narrowly below record ￰22￱ the other hand, the crypto market is still a no-go ￰23￱ market is still down 1.22% and the fear and greed index reads a strong fear at 33.

However, the king coin seems to be going up by nearly 1% in the last 24 hours. Don’t just read crypto ￰24￱ ￰25￱ to our newsletter. It's free .

Cryptopolitan logo
Cryptopolitan

Latest news and analysis from Cryptopolitan

BREAKING: Major Shock – Binance-Listed Altcoin Halts All Operations, Price Plummets

BREAKING: Major Shock – Binance-Listed Altcoin Halts All Operations, Price Plummets

Blockchain platform Kadena (KDA) announced that it has ceased all business operations. Following the company's official announcement, the KDA price quickly dropped by nearly 40%. Chart showing the dec...

BitcoinSistemi logoBitcoinSistemi
1 min
Bitcoin whale opens $235M BTC short, after netting $200M from market crash

Bitcoin whale opens $235M BTC short, after netting $200M from market crash

The $11 billion Bitcoin whale made millions in profit from last week’s crypto market crash and continues betting on more downside....

Cointelegraph logoCointelegraph
1 min
CZ’s Company Invests in Binance-Listed Altcoin Project – “Rival to Ripple and Solana…”

CZ’s Company Invests in Binance-Listed Altcoin Project – “Rival to Ripple and Solana…”

YZi Labs (formerly Binance Labs) has led a $25.5 million strategic investment round for digital infrastructure company Sign. Sign secured a $16 million investment from YZi Labs in January, marking the...

BitcoinSistemi logoBitcoinSistemi
1 min
Gold drops 5%, silver slides 8% after rally loses steam