Gold prices took another hit early Friday, October 25, 2025, as the shiny metal gears up to snap its impressive nine-week rally. After a wild ride this year, the precious asset is showing signs of fatigue, with traders pulling back after pushing it to sky-high levels.
The slide started with a massive plunge on Tuesday—the biggest single-day drop in over 12 years, down 5.7%—before bouncing back a bit on Thursday. But come Friday morning, jitters about the market being too hot returned. Gold futures dipped 0.9% to around $4,108.90 per ounce in early trading, leaving the weekly loss at about 3.7%. Still, it’s a banner year overall, with prices up a whopping 56% in 2025, fueled by central banks snapping up gold and bets on interest rate cuts from the U.S. Federal Reserve.
Experts point to clear warning signs. “Charts were screaming that gold was way overbought since early September, and wild price swings had everyone scrambling to protect their bets,” said Soojin Kim, an analyst at MUFG. The buzz around a key meeting between U.S. President Donald Trump and China’s Xi Jinping on October 30 is stealing some thunder too. That sit-down could cool off the trade war between the world’s top two economies, dialing down the need for gold as a go-to safe spot during tough times.
“Anything that eases those trade headaches might pull folks away from safe-haven buys like gold,” Kim added. Eyes are now shifting to fresh U.S. inflation numbers dropping later today, which could hint at what the Fed might do next with rates.
The Bureau of Labor Statistics will roll out September’s consumer price index at 8:30 a.m. ET—a big deal even with the ongoing government shutdown, since it helps the Social Security folks tweak benefits for inflation. Whatever the data says, it could nudge gold’s next move as investors weigh if the rally’s got more steam or if it’s time to cash in. For now, the metal’s breather feels like a reality check after months of non-stop gains.
