Technical and Fundamental Analysis of Global Gold – October 23, 2025

Gold, after an exceptional 56% surge since the beginning of the year and reaching a historic record of $4,381, faced its sharpest price decline in 12 years. A 6% drop in a single day, losing nearly $300, caught many investors off guard. Now trading around $4,116, the market stands at a critical juncture. You can…

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Gold, after an exceptional 56% surge since the beginning of the year and reaching a historic record of $4,381, faced its sharpest price decline in 12 years. A 6% drop in a single day, losing nearly $300, caught many investors off guard. Now trading around $4,116, the market stands at a critical juncture. You can visit the Trendo platform and utilize advanced trading tools and features to conduct your analyses with greater precision and confidence.

Technical Analysis of Gold (October 23, 2025)

From a technical perspective, gold has experienced a V-shaped correction after forming a double top around $4,381. The $4,100 level acts as a key psychological support, and breaking below it could pave the way for a return to the $4,000 zone. On the resistance side, the $4,180 and $4,250 levels must be broken for hopes of a full price recovery to remain alive. The ascending trendline from the $3,626 bottom remains intact, and the overall market structure stays bullish, though short-term momentum has weakened. The current consolidation pattern indicates the market is digesting the recent drop and requires a new catalyst to determine the next direction.

Technical Analysis of Gold (October 23, 2025)

Fundamental Analysis of Gold (October 23, 2025)

Fundamentally, three main factors are behind this decline. First, profit-taking by traders following the 60% rally, which triggered massive selling. Second, the strengthening of the US dollar and rising real yields, making gold more expensive for international buyers. Third, diminishing geopolitical and economic concerns, particularly reduced trade tensions between the US and China. However, the outlook remains supportive for gold. The CPI report, set to be released tomorrow, is expected to show core inflation holding steady at 3.1%. Markets are almost certain that the Federal Reserve will cut interest rates by 25 basis points next week. Rate cuts typically favor gold, as they reduce the opportunity cost of holding the metal.

Final Thoughts

The recent gold decline is more of a turning point than a crisis. In the long term, this correction may present an opportunity to enter at better prices. A balanced strategy includes diversification, scaled buying, and close monitoring of key data such as Federal Reserve decisions, the dollar index, and geopolitical developments. Gold continues to maintain its role as a hedge against inflation and instability, and its long-term outlook remains positive.

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Technical and Fundamental Analysis of Global Gold – October 23, 2025

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