Gold Posts Steepest Drop in a Dozen Years

Gold and silver saw their steepest selloff in years as investors apparently decided that the recent rally left them overvalued. Spot gold prices slumped as much as 6.3%, the biggest decline in more than 12 years, while spot silver dropped as much as 8.7%. Shares of gold miners plummeted, too, with top producers Barrick Mining, Newmont and Agnico Eagle Mines all falling by more than 8% on Tuesday morning.

The plunge brought an abrupt halt to a surge that had seen both metals post record highs in the past week. Gold had soared both on bets the US Federal Reserve will make at least one outsized rate cut by year-end and on the so-called debasement trade, where investors have been pulling away from sovereign debt and currencies to protect from runaway budget deficits.