🚨The price of gold recorded its biggest one-day percentage fall in about 12 years, plunging more than 6 % after having hit record highs.
The drop is estimated to have erased roughly US$1.75 trillion from gold’s market value.
Why it happened👇
Several inter-linked drivers appear to have triggered the sharp sell-off:
🔺Profit-taking after a rapid surge: Gold had surged significantly this year (up ~60 % or more) and had reached multiple record highs, which made many investors look to lock in gains. 
🔺Stronger US dollar and reduced safe-haven demand: A firmer US dollar makes dollar-denominated gold more expensive for other‐currency buyers and therefore tends to reduce demand. 
🔺Easing global tensions temporarily reduced one of the key motivations for buying gold (i.e., as a safe‐haven asset). 
🔺Overbought conditions / stretched valuations: With gold prices having climbed strongly, some market watchers argued the metal was in an over-extended state and vulnerable to a sharp reversal. 
🔺Liquidity and positioning issues: there was a lack of updated futures market data because of a US government shutdown, which reduced transparency and may have exacerbated the sharp move.
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