Gold has plummeted, erasing a massive chunk of its total market capitalization calculated as above-ground gold stocks multiplied by the spot price. Gold is trading at approximately $4,050 per troy ounce, down about 1.8–2.2% from yesterday’s close.
This puts it firmly below $4,100 marking a sharp pullback from recent all-time highs around $4,381 earlier this week. The drop equates to roughly $75–$85 per ounce from yesterday, the largest single-day fall since August 2020.
Over the past few days, gold has shed over 5% from its peak. Estimated at $27.8–$28.1 trillion today, based on ~216,265 metric tons 6.95 billion troy ounces of above-ground gold stocks. This is down from ~$29 trillion at the peak last week.
The plunge has erased $1.7–$1.75 trillion in market cap over the last 24–48 hours, confirming your figure. For context, earlier in the month, a single-day drop wiped out over $1 trillion alone.
Calculations based on 6.95B oz supply; minor variances from source estimates.Why the Drop?Profit-Taking: After a blistering rally up 48% year-over-year, investors are locking in gains ahead of Diwali and key U.S. inflation data this week.
A rebounding dollar and de-escalating U.S.-China trade frictions are pressuring non-yielding assets like gold. Capital is shifting to stocks, Bitcoin, or Treasuries as Q4 optimism builds.
Gold broke key support near $4,100, accelerating the sell-off; forecasts suggest potential tests of $4,045 if momentum persists. Short-term bearish, with downside risks to $4,000 if U.S. data surprises positively (e.g., cooler inflation).
But long-term bulls remain intact—analysts like Goldman Sachs eye $4,000+ by mid-2026, driven by central bank buying and scarcity. Gold’s “infinite market cap” slow supply growth keeps it a wealth benchmark, now rivaling entire stock indices in scale.
As of October 21, 2025, spot gold prices are hovering around $4,371–$4,393 per troy ounce, with intraday peaks touching $4,393.60 earlier. This marks a staggering ~60% surge year-to-date from ~$2,722 at the start of 2025, and it’s up over 19% in the past month alone.
Prices fluctuate rapidly; these are mid-morning ET figures. Gold briefly dipped after Monday’s record close above $4,380, but the uptrend remains intact. This isn’t just hype—gold’s ATH run is fueled by a perfect storm of global jitters.
Escalating U.S.-China trade tensions think tariffs and rare earth mineral disputes are pushing investors toward gold as a hedge against uncertainty. Expectations of further interest rate reductions make non-yielding assets like gold more appealing, especially with inflation lingering.
Ongoing U.S. sanctions, the Russia-Ukraine fallout, and diversification by central banks (e.g., China loading up) are supercharging buys. A softer USD and record inflows into gold ETFs are amplifying the rally.
Analysts like those at Goldman Sachs have bumped their 2026 forecast to $4,900/oz, citing sustained central bank hoarding. On the flip side, some warn of overbought conditions—Bank of America advises caution as prices stretch valuations thin.
From $850 to $4,400?Gold’s inflation-adjusted ATH was ~$850/oz in January 1980 nominal ~$2,000 in today’s dollars, but the nominal record was ~$2,000 in 2011. Fast-forward to 2025: It first cracked $4,000 on October 7 amid Fed bets and a U.S. government shutdown scare, then powered past $4,300 last week.
At ~$4,400, it’s obliterating those marks—up 50%+ YTD—and some bulls eye $5,000 or even $10,000 if chaos persists. One chart-watcher eyes a “sick move” to $4,400 after dipping below $4,196: “GC1! taking out PWL < 4196 then back up to 4400 for a new ATH would be a sick move .”
Peter Schiff’s “gold eating Bitcoin’s lunch” jab is still echoing—BTC’s down 32% in gold terms since August. If you’re eyeing exposure ETFs, futures, or physical, consider diversification over FOMO—experts stress a long horizon over chasing peaks. What’s your take: Buy the dip or wait for $4,400?
