Gold prices experienced a significant drop on Monday, falling as much as 3.2%, in response to a major global stock market selloff. The decline is attributed to traders liquidating gold positions to cover margin calls on stock losses. Despite this setback, gold remains up about 15% for the year, supported by factors such as central bank buying, Asian consumer demand, and geopolitical tensions. Analysts suggest that this drop is likely temporary, with investors expected to repurchase gold once market volatility subsides.