Is the gold bull feast coming to a halt? A pullback from highs could trigger profit-taking amidst the scorching rally.
2025-10-09 10:44:51
After a recent surge, gold prices are showing signs of overheating. On Wednesday (October 8), gold prices hit a record high of $4,059.07 per ounce before retreating, indicating that spot gold is facing short-term correction pressure from overbought levels.
Spot gold fell as much as 1% during Thursday's Asian trading session, currently fluctuating around $4,015 an ounce, after closing up 1.4% the previous session. Technical indicators suggest that gold has remained in overbought territory for the past month, potentially triggering profit-taking after four consecutive sessions of strong gains.
Meanwhile, gold's safe-haven appeal has waned after U.S. President Donald Trump said the conflict in the Middle East was "very close" to being resolved, after Israeli and Hamas officials expressed cautious optimism that ongoing talks in Egypt could end the two-year conflict in Gaza.
Despite multiple uncertainties, including global trade tensions, the Federal Reserve's independence, and US fiscal stability, gold prices have still risen by over 50% this year. Heightened geopolitical tensions have fueled demand for safe-haven assets throughout the year, while central banks around the world have continued to increase their gold reserves at a rapid pace.
Platinum and palladium also retreated on Thursday after strong gains on Wednesday, with continued tight market conditions and inflows into related ETFs providing support for both metals. Silver prices fell slightly, but remained near all-time highs, according to intraday data going back to 1993.
Technology Outlook
The daily spot gold chart shows that the 14-day relative strength index (RSI) remains in overbought territory, putting significant downward pressure on gold prices during Thursday's Asian session. The RSI has yet to reach the extreme 90 level, a common occurrence during sustained strong market conditions.
On the upside, if the gold price effectively breaks through $4,100, the next resistance level will be $4,150, and then challenge the $4,200 mark.
On the downside, initial support for spot gold is at the psychological level of $4,000. If this level is broken, the price of gold may fall to the low of $3,941 on October 7 and then test the low of $3,819 this month.
(Spot gold daily chart, source: Yihuitong)
At 10:44 Beijing time, spot gold was trading at $4016.45 per ounce.
Spot gold fell as much as 1% during Thursday's Asian trading session, currently fluctuating around $4,015 an ounce, after closing up 1.4% the previous session. Technical indicators suggest that gold has remained in overbought territory for the past month, potentially triggering profit-taking after four consecutive sessions of strong gains.
Meanwhile, gold's safe-haven appeal has waned after U.S. President Donald Trump said the conflict in the Middle East was "very close" to being resolved, after Israeli and Hamas officials expressed cautious optimism that ongoing talks in Egypt could end the two-year conflict in Gaza.
Despite multiple uncertainties, including global trade tensions, the Federal Reserve's independence, and US fiscal stability, gold prices have still risen by over 50% this year. Heightened geopolitical tensions have fueled demand for safe-haven assets throughout the year, while central banks around the world have continued to increase their gold reserves at a rapid pace.
Platinum and palladium also retreated on Thursday after strong gains on Wednesday, with continued tight market conditions and inflows into related ETFs providing support for both metals. Silver prices fell slightly, but remained near all-time highs, according to intraday data going back to 1993.
Technology Outlook
The daily spot gold chart shows that the 14-day relative strength index (RSI) remains in overbought territory, putting significant downward pressure on gold prices during Thursday's Asian session. The RSI has yet to reach the extreme 90 level, a common occurrence during sustained strong market conditions.
On the upside, if the gold price effectively breaks through $4,100, the next resistance level will be $4,150, and then challenge the $4,200 mark.
On the downside, initial support for spot gold is at the psychological level of $4,000. If this level is broken, the price of gold may fall to the low of $3,941 on October 7 and then test the low of $3,819 this month.
(Spot gold daily chart, source: Yihuitong)
At 10:44 Beijing time, spot gold was trading at $4016.45 per ounce.
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- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
