Sharp Drop in Gold Prices: Fear and Caution in Expectations

Sharp Decline in Gold Market and Investor Reactions

Gold prices entered a volatile period this year due to concerns stemming from trade wars and uncertainties surrounding the American economy. Throughout 2023, gold prices reached all-time highs with an increase of over 50%, but on October 21, they experienced a historic drop, losing more than 6% of their value. This sudden movement heightened investors' questions regarding the future of gold. For investors, determining whether the current situation is a buying opportunity or the beginning of a period of uncertainty has become an important point.

The Impact of the American Economy on Gold

Historically viewed as a safe asset, gold's prices fluctuate based on economic expectations. This year's increase in gold is thought to be supported by concerns over potential weakness in the U.S. economy. However, despite the U.S. GDP showing growth of over 3% in the second and third quarters of the year, in-depth analyses reveal some negative data.

The Challenger, Gray and Christmas reports indicate that layoffs in the first nine months of 2025 increased by 55%, reaching 946,426 individuals. Additionally, the data released by the U.S. Department of Labor revealed that the unemployment rate rose to 4.3%, the highest level since 2021. This situation, combined with job losses and rising inflation, has raised serious concerns about the health of the economy.

Analyses Behind the Decline

Experienced analysts emphasize that the data reflecting the decline in gold needs to be examined thoroughly. Carley Garner stresses that investors should be cautious following the drop on October 20. Garner expressed concern over the disconnect between gold and bonds as of that date, suggesting that it may be more sensible for investors to turn toward alternative assets.

According to experts, gold is facing a correction or revaluation process ahead, which requires investors to adopt a careful and analytical approach. Goldman Sachs warns that GDP growth forecasts may not accurately reflect the real economic situation.