Today's gold price: UK price of gold and silver per gram take biggest hit in decades - what rate news means
A dramatic reversal has caught markets off guard, forcing investors to reassess 🧠
- Gold prices have fallen sharply after hitting record highs just weeks ago
- The sell-off followed US developments that strengthened the dollar and hit safe-haven assets
- Gold suffered its worst one-day drop since the early 1980s, with silver falling even harder
- Analysts warn prices could remain volatile as investors hesitate to buy the dip
- The sudden slump has left investors weighing up whether to hold, buy more, or sell
After soaring to record highs just weeks ago, the price of gold has fallen dramatically.
It’s left many investors wondering whether the shine has come off for good, or whether this sudden slump has created an opportunity.
The recent sell-off has been swift and severe. At the time of writing, the price of gold sits at around £3,436 for an ounce. That’s £111 per gram.
But why exactly has the price of gold fallen so rapidly? And is now a good time to invest in the precious metal... or sell off your existing portfolio? Here is everything you need to know about it.
Why has the price of gold fallen?
Gold and silver both plunged after markets reacted to developments in the US, where President Donald Trump announced his preferred nominee for the next chairman of the Federal Reserve.
The choice of former Fed governor Kevin Warsh, who is seen as more predictable by investors, helped calm nerves about US monetary policy.
That sense of reassurance strengthened the US dollar, and when the dollar rises, gold often falls. As confidence returned to mainstream markets, investors rapidly pulled money out of so-called “safe-haven” assets such as gold and silver.
As a result, gold suffered its worst one-day fall since the early 1980s, while silver experienced its steepest drop for decades, at one point shedding nearly a third of its value.
Losses continued into the start of this week, underlining just how quickly sentiment has turned.
The price of silver - at the time of writing - currently sits at around £60 for an ounce. That’s about £2 per gram.
Why had the price of gold been rising recently?
This reversal comes after a long rally. Gold had surged as investors sought protection from geopolitical tensions, global conflict and uncertainty around trade tariffs. When that fear eased, even temporarily, prices came back down to earth.
Analysts say the speed of the fall has caught many off guard, and silver, which had risen faster than gold, has also corrected more violently.
Some experts warn that prices could continue sliding in the short term, particularly as traders remain reluctant to “buy the dip”, and Asian markets approach the Lunar New Year, a period when risk-taking often falls.
The shockwaves are being felt beyond precious metals. Mining stocks have come under pressure, while oil prices have also dipped, weighing on commodity-focused companies and adding to broader market unease.
Is now a good time to invest in gold – or sell?
For everyday investors, the key question is whether gold still deserves a place in a portfolio. The answer depends largely on your time horizon and your reason for holding it.
If you bought gold recently at or near its peak, the temptation to sell and cut losses may be strong. Short-term traders should be aware that further volatility is likely while markets search for a stable price level.
But long-term investors may see things differently. Gold is traditionally used as a hedge against inflation, currency weakness and major economic shocks.
A sharp pullback does not necessarily undermine that role, and for some, lower prices could make gradual investing more attractive.
What gold may no longer offer, at least for now, is a smooth or predictable ride. As recent days have shown, even “safe” assets can move fast when global sentiment shifts.