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Gold Just Had Its Worst Day in 5 Years
What Falling Gold Prices Mean for Your Portfolio
October 22, 2025
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Good Morning, Markets are grinding higher even as gold sees its sharpest selloff in five years, sending major miners like Newmont sliding. We unpack what drove the sudden drop, how it’s reshaping safe‑haven trades, and what it might signal about inflation expectations. If you’ve got exposure to commodities or materials, this one’s worth a close look.OpenAI disrupts the search market with its new AI-powered Atlas browser, Amazon faces scrutiny over plans to replace hundreds of thousands of workers with robots, and Novo Nordisk undergoes leadership turmoil as its chairman resigns amid strategic clashes and U.S. expansion plans. My latest poll and trivia are below. Here are your Morning Bullets. – Truly yours, Fred Frost |
📈 Yesterday's Market RecapMarkets edged up yesterday with a mix of optimism and caution. Strong earnings from Danaher lifted spirits, while lingering concerns over government shutdown impacts kept gains in check. Here’s what moved the tape.
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🔭 What to Watch TodayToday’s calendar is packed with earnings releases and policy developments that could sway markets. Keep an eye on these events for potential volatility or opportunity. |
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🔥 The Big BulletNewmont Shares Drop After Gold Prices SinkWhat happened: Shares of Newmont, one of the world's largest gold producers, fell sharply Tuesday. This came after gold prices had their steepest single-day decline in five years. The sudden drop surprised investors, especially since gold had recently been rising due to global tensions and inflation concerns. On the same day, a separate report confirmed the price dip marked one of the largest daily selloffs for gold in recent memory. Newmont’s stock price is closely tied to gold’s market value, so a dip like this can significantly impact its earnings outlook. Investors often turn to gold stocks during uncertainty, but that safety net may be weakening. The broader commodities market also felt pressure from changing interest rate expectations. Concerns are growing that gold may have peaked, at least in the near term. Why it matters: The drop in gold prices affects more than just one company. Many investors use gold as a hedge when they expect inflation or market instability. If gold prices keep falling, those investors may look for safer or higher-return options. This could shift money out of gold and gold-related stocks like Newmont, weakening the sector. It also signals that the market may be adjusting its views on inflation and interest rates. Companies that rely on commodity prices to stay strong, like gold miners, will face tighter margins. This could lead to less investment in exploration or job cuts if prices stay low. In addition, lower gold prices can reduce revenues for countries that export it. The impact could ripple into emerging markets and mining-focused economies. What’s next: Investors will closely watch if gold prices stabilize or fall further. Key upcoming events, like inflation reports and central bank decisions, may shape what happens next. Any signs of rising inflation could push gold higher again. If interest rates stay high, however, gold may struggle because it doesn’t pay interest like bonds. Watch for earnings updates from other gold mining companies to see if Newmont’s problems are shared. A prolonged dip could also impact mining employment and equipment sales. Retail investors should consider how much gold exposure is in their portfolios. The coming weeks could define whether this was a short-term price hiccup or the start of a longer trend.
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Yesterday, I asked you: Who do you think is most serious about breaking China’s grip on critical minerals? The majority of you at 55% said "The U.S. government."
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Today's Trivia
Yesterday, 70% of you chose the right answer to the trivia question: It keeps the value of money relatively stable, supporting predictable prices and economic growth
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