Gold Mining Stocks Fall More Than 4% as Metal Retreats from All-Time Peak

Gold prices continued their retreat on Wednesday, October 22, 2025, declining for a second consecutive day after reaching an all-time high earlier in the week. According to CNBC, gold futures fell $61.30, or 1.49%, to $4,053.10 per ounce by 8:25 a.m. ET. Gold mining stocks tracked the metal lower, with shares of Newmont and Barrick dropping more than 4% in premarket trading.

The Wednesday decline followed a sharper selloff on Tuesday, when gold lost 5.74% to close at $4,109.10 in its worst single-day performance since 2013. The two-day pullback erased gains after gold futures hit an intraday record of $4,398 per ounce on Monday. Swiss bank UBS attributed the correction to technical factors rather than fundamental shifts. Analysts led by Wayne Gordon told clients there was no macroeconomic or geopolitical event driving the pullback this week.

Profit-Taking Follows Historic Rally

The correction represents a pause in what has been gold's strongest year since 1979. CNN reports that gold has surged more than 50% in 2025, surpassing volatile periods following the September 11 attacks, the 2008 financial crisis, and the Covid-19 pandemic. In the past two months alone, gold prices rallied 25%.

Investors began taking profits after the metal's spectacular run. The selloff came as the U.S. dollar rebounded and optimism grew over easing trade tensions between Washington and Beijing. Trade representatives from both countries are expected to meet this week ahead of a planned meeting between Chinese leader Xi Jinping and President Donald Trump. Analysts also pointed to reduced physical demand following the end of the Diwali festival in India, the world's second-largest gold consumer.

Central Bank Demand Supports Long-Term Outlook

Despite the near-term volatility, structural factors continue to support elevated gold prices. Central banks have been major buyers throughout 2025, with World Gold Council data showing authorities added 166 tonnes to global official gold reserves in the second quarter alone. The National Bank of Poland confirmed in September it would raise its gold target from 20% to 30% of international reserves.

Investment demand has also been strong. Physically backed gold ETFs added 634 tonnes year-to-date through early October, bringing holdings to just 2% below their 2020 peak. Western investors led the charge as geopolitical tensions, dollar weakness, and expectations of Federal Reserve rate cuts drove safe-haven demand. UBS maintains that it is premature to turn negative on gold despite the current pause in the rally.

Mining companies have benefited from higher prices. Year-to-date through mid-October, Newmont stock gained 140% while Barrick rose 40%, according to multiple analyst reports. Both companies reported record free cash flows in 2025 and maintained strong operational performance. However, technical indicators suggest gold entered overbought territory before the correction, with prices more than 20% above their 200-day moving average.

Market Watches for Next Direction

Technical analysts view the current correction as a healthy consolidation following rapid gains. Gold climbed from $3,500 to $4,000 per ounce in just 36 days, according to World Gold Council analysis. The pace exceeded the average 1,036 days between prior $500 incremental milestones. Short-term dynamics could introduce additional volatility as strategic investors rebalance portfolios that reached gold allocation targets.

Major financial institutions maintain bullish forecasts for 2025 and beyond. Goldman Sachs projects gold could reach $4,500 by year-end and $4,900 in 2026. Bank of America sets a forecast range between $4,400 and $5,000, citing dedollarization, central bank accumulation, and fiscal instability as multi-year catalysts. The consensus view suggests the fundamental drivers supporting elevated prices remain intact despite potential near-term pullbacks.

Further Reading

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