Gold prices fell sharply by 5.7%, marking the largest single-day decline since April 2013. They closed at $4,109 per ounce, a significant drop from an all-time high of $4,380 the day before. This decline resulted in a loss of $1.75 trillion in market value.
In sharp contrast, Bitcoin rose by 2% to a new record of $114,000, resulting in over $150 million in short liquidations and reinforcing its bullish trend.
JUST IN: Gold market cap dumps by $1.4 trillion as Bitcoin $BTC rebounds — its biggest single day decline since August 2020 pic.twitter.com/uHb7QZFeNI
— BlockNews (@blocknewsdotcom) October 21, 2025Analysts cited multiple triggers:
- Profit-Taking: Gold’s 60% yearly gain prompted sell-offs after the parabolic rise.
- Strong US Dollar: Reduced appeal for non-yielding safe-haven assets.
- US-China Trade Optimism: Lowered geopolitical risks.
- Strong US Q3 Earnings: Boosted equities over gold.
- Post-Diwali Demand Drop: Ended India’s peak physical buying season.
Read: Gold Prices Drop in Pakistan and Globally on October 20, 2025
Silver dropped 8.7% to $49.70, marking its worst decline since 2021. Major gold mining stocks also experienced significant losses. Despite this correction, experts anticipate support from geopolitical uncertainties and financial risks. The long-term outlook remains positive. Additionally, the divergence between gold and Bitcoin reflects changing investor preferences in response to economic indicators.
