Gold sinks to $4005 before rebounding

Gold sinks to $4005 before rebounding — Asian market recap (Oct 21, 2025)

Trading in Asia started quietly before bursting into action as Tokyo markets opened, triggering heavy gold selling early in the session. Spot gold plunged $130, hitting a low of $4005, before strong buying interest ahead of the key psychological level spurred a sharp rebound to around $4040. The recovery extended through the session, with prices now hovering near $4125, slightly above the North American close.
Volatility remains elevated following yesterday’s steep decline, suggesting another turbulent day ahead for precious metals.

Market snapshot

• Gold: up $3 to $4126
• Nikkei 225: +0.1%
• AUD leads, USD lags

Asia headlines

• Japan trade balance: -¥234.6B (vs +¥22.2B expected)
• Prime Minister Takaichi reportedly preparing a large-scale stimulus package, boosting Japanese equities after an early dip in the Nikkei.
• USD/JPY fell to 151.50 before recovering to trade near 151.85, flat on the day.
• Trump to visit Japan from October 27–29.
• China’s Commerce Ministry pledged to “actively address concerns about China’s development environment.”
• Oil: Private inventory data showed a large drawdown, offering some support to energy markets.
• TD Securities raised its 2026 copper price forecast to $5.25/lb, saying “higher copper prices are inevitable.”
• Netflix shares dropped 6% post-earnings, as investors digested weaker-than-expected guidance.

Global outlook

Broader risk sentiment in Asia has improved modestly, supported by optimism over stimulus expectations in Japan and reports that the U.S. is nearing a trade deal with India, potentially setting tariffs around 15–16% — a favorable rate for one of the world’s most protectionist economies. The development could pave the way for further tariff reductions with other U.S. trading partners.