Gold prices tumbled as much as 6.2% to around $4,100 per ounce on Tuesday, their biggest daily drop since April 2013, after touching a record high of $4,382 on Monday. The decline came as profit-taking accelerated and the US dollar strengthened, while safe-haven demand eased amid improving global sentiment. Optimism grew over easing US–China trade tensions, with Presidents Donald Trump and Xi Jinping scheduled to meet next week to address tariff disputes and avoid further escalation. The end of the seasonal gold-buying spree in India also weighed on physical demand. Meanwhile, there were expectations that the US government shutdown could be resolved this week and anticipation of Friday’s delayed US inflation data. Markets continue to price in a 25-basis-point Fed rate cut next week, with another reduction likely in December. Despite the pullback, gold remains up 55% year-to-date, supported by expectations of further Fed easing and lingering demand for safe-haven assets.