Gold and silver prices tumbled for the second consecutive day on October 22, 2025, as investor optimism faded following U.S. President Donald Trump’s mixed trade comments.
After climbing over 60% this year and setting a new record of $4,381.51 on October 21, gold plunged to $4,000 per ounce, marking a sharp 5.3% decline. Silver mirrored the fall, slipping amid renewed market tension and a stronger U.S. dollar.
The downturn followed months of intense gains fueled by a weak dollar, anticipated interest rate cuts, declining bond yields, and aggressive central bank purchases. However, Trump’s statements about a possible meeting with Chinese President Xi Jinping reignited trade fears, prompting investors to cash out.
Trump’s Trade Comments Rattle Confidence
On October 21, Trump hinted at a potential trade breakthrough at the upcoming APEC summit in South Korea, calling it a “great deal in the making.” Moments later, he tempered expectations, warning, “Maybe it won’t happen, things can get nasty.”
The conflicting messages quickly unsettled markets. Hopes for easing U.S.–China tensions dimmed, pushing safe-haven assets into retreat and sending Asian stocks lower.
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Hong Kong’s Hang Seng dropped 0.8% to 25,818.53
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Shanghai Composite slipped 0.1% to 3,913.76
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Sydney, Wellington, Taipei, and Manila followed with similar declines
In contrast, Singapore, Seoul, and Jakarta saw minor gains, while Tokyo’s Nikkei held flat at 49,307.79, supported by political stability. In Europe, London’s FTSE 100 gained 0.5%, but Paris and Frankfurt edged lower.
Mining Stocks Suffer Heavy Losses
The drop in gold prices hit mining shares hard.
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Northern Star Resources (Australia) plunged over 8%
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Perseus Mining fell more than 6%
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Zijin Gold International (Hong Kong) lost 4%
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Shandong Gold Mining slid nearly 2%
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Merdeka Copper Gold (Jakarta) shed 4%
Analysts warned that volatility in the commodities market now rivals that of equities. Stephen Innes, of SPI Asset Management, described the event as “a six-percent cliff dive” after months of relentless gains.
He added, “Gold’s volatility mirrors the chaos of pandemic-era trading, though demand remains supported by central banks and cautious investors.”
Similarly, Charu Chanana of Saxo Markets noted that the correction “helps cool an overheated trade, preventing a potential bubble.”
Oil Prices Surge Amid India Speculation
Oil bucked the trend, jumping over 2% on rumors that India may curb imports of Russian crude.
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West Texas Intermediate (WTI) rose to $58.43 per barrel
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Brent Crude climbed to $62.54 per barrel
Trump claimed India agreed to scale back purchases as part of a broader U.S. trade agreement, though New Delhi offered no confirmation.
As the world’s third-largest oil importer—relying on foreign crude for 85% of its energy needs, any shift by India could tighten global supply chains.
Global Markets Brace for More Fluctuations
The Dow Jones Industrial Average added 0.5%, closing at 46,924.74, but overall sentiment remained fragile.
Currency markets reflected the uncertainty:
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The euro rose slightly to $1.1612
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The pound slipped to $1.3332
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The dollar weakened against the yen to 151.75
Meanwhile, developments such as Trump–Russia summit talks and renewed Middle East tensions added to the global unease.
Despite the dip, analysts argue the gold bull run isn’t over. With possible rate cuts and mounting debt risks, the metal’s safe-haven appeal endures. Investors now await trade updates and earnings reports to gauge the market’s next direction.
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