Gold prices dropped sharply on Tuesday, snapping a record-setting rally as investors booked profits and the U.S. dollar regained strength. Spot gold fell nearly 5% in its steepest one-day slide since 2020, cooling off after months of surging gains that had pushed the metal to all-time highs above $4,300 an ounce, according to Reuters.
The selloff, analysts say, reflects a mix of technical and sentiment-driven factors rather than a shift in gold's long-term outlook. After a stunning rally, the yellow metal is down nearly $90 per ounce, with the correction largely driven by profit-taking and overbought conditions in futures markets, according to analysts at FXStreet.
