PANews reported on October 21st that, according to a Financial Times report, gold prices plummeted 6% on Tuesday, their biggest single-day drop since April 2013. The historic gold rally paused as India's Diwali gold-buying season came to a halt. After hitting a high of $4,381 per ounce on Monday, gold prices plummeted to $4,082 on Tuesday, a move widely seen as a belated correction. This year's historic rally has accelerated in recent weeks, with gains reaching 25% in the past two months alone. Nicky Shiels, head of metals strategy at MKS PAMP SA, said: "The market is showing signs of a frothiness, primarily driven by extreme overbought conditions – the rally is peaking. The $1,000 surge in six weeks suggests that gold prices are overvalued and we are at irrationally high levels." Analysts pointed to the recent rebound in the US dollar and the lack of futures market position data due to the US government shutdown as contributing to the sharpest gold price drop since 2013.PANews reported on October 21st that, according to a Financial Times report, gold prices plummeted 6% on Tuesday, their biggest single-day drop since April 2013. The historic gold rally paused as India's Diwali gold-buying season came to a halt. After hitting a high of $4,381 per ounce on Monday, gold prices plummeted to $4,082 on Tuesday, a move widely seen as a belated correction. This year's historic rally has accelerated in recent weeks, with gains reaching 25% in the past two months alone. Nicky Shiels, head of metals strategy at MKS PAMP SA, said: "The market is showing signs of a frothiness, primarily driven by extreme overbought conditions – the rally is peaking. The $1,000 surge in six weeks suggests that gold prices are overvalued and we are at irrationally high levels." Analysts pointed to the recent rebound in the US dollar and the lack of futures market position data due to the US government shutdown as contributing to the sharpest gold price drop since 2013.