investingLive Americas FX news wrap 21 Oct: Gold and silver tumble. | investingLive

It had to happen eventually — prices can’t climb forever. After months of steady gains, gold and silver finally reversed sharply lower today.

For gold, the move was particularly dramatic. Since July 30, the metal had surged 34%, and as of yesterday’s new all-time high at $4,381.48, it was up roughly 67% for the year. But today, that trend snapped. Gold plunged $233, or -5.35%, to $4,121.45, marking its largest one-day decline since August 11, 2020, when it fell 5.77%.

Despite the sharp drop, prices are still only back to levels last seen on October 13 — just eight trading days ago. However, from a technical standpoint, the pullback is significant: gold has fallen below its 200-hour moving average, currently at $4,171.17, which now serves as a near-term resistance and risk level for sellers heading into the next session.

On the downside, a break below $4,059 (see red numbered circles on the chart) would open the door for further selling pressure. Conversely, if buyers can push the price back above the 200-hour MA, it could spark a rebound, with the 100-hour moving average near $4,267 as the next key upside target.

Silver saw a sharp reversal, tumbling $3.90 (-7.43%) to $48.53 after reaching a high of $52.60 and a low of $47.89. The drop marked the largest one-day decline since February 2021. Despite the setback, silver remains up 49.6% since early August, and though it has pulled back from Friday’s all-time high, it is still up 68.9% year-to-date, compared with a gain of 89.3% at the recent peak.

In the FX market, the USDJPY was the standout mover, gaining about 0.78% on the day. Most of the advance occurred before the North American session, following confirmation that Sanae Takaichi had been appointed as Japan’s first female Prime Minister. Markets viewed her as dovish, favoring fiscal stimulus and accommodative policy, though she noted that she sees no need to review the BoJ–government accord, reaffirming that monetary policy decisions rest with the BoJ.

Technically, USDJPY broke above both the 100-hour MA (150.819) and the 200-hour MA (151.46), extending to a high of 152.17 before easing back on Takaichi’s less-dovish remarks. The pair found support near the 200-hour MA, keeping buyers in control. It last traded around 151.89, roughly 42 pips above the 200-hour average.

Elsewhere, the U.S. dollar gained against most major currencies except the Canadian dollar. In Canada, CPI data came in slightly hotter than expected, boosting the CAD and pushing USDCAD down by -0.10%.

Geopolitically, sentiment turned cautious as the Putin–Trump meeting in Budapest was postponed indefinitely, while Trump also suggested his planned summit with China’s President Xi in South Korea may not occur.

In equities, U.S. stocks ended mixed. The Dow Jones Industrial Average was lifted by strong earnings from 3M (+7%) and Coca-Cola (+3.8%). The S&P 500 finished flat, while the Nasdaq Composite slipped modestly by -0.16%.

n the US debt market, yields were lower with a flatter yield curve: