Gold is down sharply because of several key factors: investors are taking profits after gold hit record highs recently, the U.S. dollar has strengthened making gold more expensive for holders of other currencies, and optimism over U.S.-China trade talks has reduced the demand for gold as a safe-haven asset. The gold price experienced its worst one-day drop since 2013, falling about 6.3% in a single day from a record peak around $4,381 to about $4,082 per ounce. This selloff follows a prolonged rally driven by economic uncertainty and interest rate cut expectations. Additional factors include easing geopolitical tensions which shift investor focus to riskier assets like equities, technical signals indicating overbought conditions, and anticipation of upcoming U.S. inflation data and Federal Reserve meetings. Despite the short-term volatility and steep price correction, gold's long-term bullish outlook remains intact due to ongoing risks like inflation and geopolitical uncertainties. Investors are viewing this dip largely as a buying opportunity rather than a signal to exit the market.