Gold fell 3.2% to $4,150/oz on Tuesday, marking its third-largest single-day drop this year, driven by US real interest rates hitting an 18-year high, position squaring ahead of China's long holiday, and geopolitical uncertainty. Silver dropped approximately 5% in a single day.

Saxo Bank noted that the US 10-year real yield has risen to about 2.85%, an 18-year high. Goldman Sachs expert Adam Gillard stated that Chinese investors concentrated on closing positions ahead of the National Day holiday, with long positions on the Shanghai Futures Exchange (SHFE) decreasing by about 11,000 lots. Additionally, Donald Trump's rejection of Iran's ceasefire proposal exacerbated geopolitical uncertainty. Gold prices have fallen below the critical support level of $4,230, with the next downside target pointing to $4,000/oz.