The decline in gold prices drove down the prices of other related commodities. By the close of the New York market, the September-delivery silver futures price fell by $2.76 to $39.51 per ounce; the October-delivery platinum futures price plummeted by $60.3 per ounce to $1819.8.
Many people widely believed that if gold prices continued to fall, many investors who blindly followed the trend would likely face significant losses. Despite this, some analysts still remained optimistic about the long-term trend of gold prices, believing that the rise in gold prices was inevitable, although it was difficult to determine how much time this process would take from the current perspective.
Data showed that last week, the gold holdings of SPDR Gold Trust reached as high as 1,290 tons, nearing the historical record of 1,320 tons.
This marked the second consecutive day of decline in international gold prices. On the 23rd, gold prices had already fallen by $30, which should have been a significant warning to investors. Another warning came when the gold holdings of the world's largest gold exchange-traded fund, SPDR Gold Trust, dropped sharply by nearly 25 tons to 1,259.57 tons by the afternoon of the 23rd, reflecting instability in the gold market.
However, recent market expectations were not particularly favorable for gold prices. In addition to financial markets trending towards stability, Federal Reserve Chairman Ben Bernanke might announce new economic stimulus measures on the 26th of this month, further adjusting the economy. The market judged that the U.S. government seemed ready to take further steps to ensure economic stability.
Under the continuous impact of the European and American debt crises, investors kept seeking safe havens, causing international gold prices to repeatedly break records since July this year, with a cumulative increase of up to 25%. Not only investors from developed countries like the U.S. were enthusiastic about gold, but also many individuals from emerging economies such as China were keen on investing in gold. However, at the same time, the risk of investing in gold has been increasing. Many traders previously believed that gold prices could easily break through $2,000 per ounce in the near term and encouraged people to buy in.
Some market analysts were deeply concerned about the prospects of international gold prices, predicting that there might be another round of sharp declines soon, with the drop potentially ranging between $100 to $200 per ounce. Especially with the volatility in financial markets easing somewhat recently, investors have chosen to cash out their profits. The risks in the gold market have escalated unprecedentedly.
The movement of gold prices in the New York Mercantile Exchange on that day left many investors panic-stricken. By the close of the New York market, the most actively traded December contract plummeted by $104 per ounce, closing at $1,757.3. The sharp drop on that day also brought gold prices back below $1,800.
International gold prices plummeted sharply on the 24th, with a decline of as much as 5.6%, marking the largest single-day drop since March 2008 and drawing global attention.