Gold market analysis

Gold price may challenge $4,410 within the day. 17/10/2025 10:08 Completed. 

Gold prices continue to reach new highs. When I woke up this morning, I checked the price and found that it had risen to a new level in just a few seconds. It's unknown how many investors have noticed that, from the hourly chart, the adjustment range after each significant rise since October has been smaller than the previous one. For instance, the adjustment range after the rise from October 2nd to 9th was 50%, then it was 38.2% after the rise to October 14th, and only 23.6% after the rise on October 15th (a less commonly used reference range). This seems to indicate that the power of the bears is weakening. 

The more mountains one climbs, the more likely one is to encounter a tiger. 

Little did they know that after reaching a new high of $4,379.29 this morning, the gold price plunged again. Technically, the previous few corrections have all found support around the 20-hour SMA (currently around $4,229). The sharp drop this morning has not yet reached that level. From the perspective of investor psychology, the continuous rise in the gold price has been accepted by the market, and even some have the courage to buy at the moment of a new high. If this phenomenon becomes widespread among retail investors, it will be exactly what the big players want. There is no guarantee that one day, investors who bought at the high will think that the gold price will reach a new high and wait for it to return, only to find that it may never come back! 

Gold prices are expected to break through 4,260 again. 

In summary, the performance of gold prices cannot be explained by common sense. This morning, the gold price dropped to the $4,279 level and then rebounded. If we observe it with the Gann Square, the current gold price has returned to the range of $4,310 to $4,360. In fact, the high point of the gold price this morning was close to $4,380, but the gold price has closed higher every day. This does not seem to be the result at the end of the day. In other words, the gold price is likely to challenge $4,410 today! I make such a bold assumption based on the performance of the gold price, but does this mean that the gold price is moving towards its ultimate high point further? 

The above content is for reference only and does not constitute investment advice. 

MTF Special Analyst Zheng Guangfu