In trading on October 21, the cost of gold fell more than 4% to $4168.07 per troy ounce. This was the strongest decline over the past four years after several weeks of rapid growth, noted Bloomberg.

Interest in protective assets weakened as market tensions eased: U.S. President Donald Trump and Chinese President Xi Jinping plan to meet next week to discuss trade disagreements, and India ended the seasonal surge in gold purchases, Bloomberg wrote. Additional pressure was exerted by a stronger U.S. dollar, which made precious metals more expensive for foreign buyers, the publication added.

"Traders have become cautious in recent sessions, fearing a correction and consolidation," said Ole Hansen, commodities strategist at Saxo Bank, in a Bloomberg statement. - These are the times when the market shows its true strength, and this time is likely to be no exception: fundamental demand will limit the scale of the pullback." He added that the ongoing U.S. government shutdown has deprived market participants of one of their key analysis tools, the weekly Commodity Futures Trading Commission (CFTC) report showing hedge funds' and investors' positions in gold and silver futures. According to Hansen, the lack of this data is particularly sensitive now, when speculative long positions may have grown to excessive levels, increasing the risk of a correction.

This article was AI-translated and verified by a human editor

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