Gold: "Initial corrections"

After its dramatic rise, the price of gold is now showing signs of weakness. Michael Blumenroth assesses the situation.

23 October 2025. FRANKFURT (Xetra-Gold). After the long, unchecked rise in prices, which had driven gold prices to new record highs week after week and, most recently, even day after day, it was gradually time for the first price corrections. Experience shows that sustained sharp price increases often lead to severe setbacks at some point, with all investors wanting to exit their positions at the same time. In this sense, it is often helpful when price corrections occur from time to time, allowing short-term and more speculative investors to take profits and the market to become less one-sided.

Profit-taking ends price rally

In recent days, many short-term investors and trend followers have jumped on the bandwagon in the precious metals markets, especially gold, as prices seemed to be rising inexorably. However, on Friday evening and especially yesterday, Tuesday, there was massive profit-taking, which sent prices tumbling. There are other reasons that pointed to a short-term setback in prices:

• The financial markets are becoming increasingly convinced that the planned meeting between US President Trump and Chinese President Xi will result in a solution to the trade conflict between the two countries, which is why “safe haven” positions in gold have been dissolved.
   
• Gold and silver benefited greatly from rising demand from India in the run-up to the Diwali festival. In September, India's gold imports from Switzerland rose by 97 percent compared to the previous month, to 30 tons.
   
• Due to the government shutdown, no data on the current positioning of investors on the futures exchanges is currently being published in the US. The latest available data at the end of September pointed to a high buying position among speculative market participants – this is likely to have increased further. These positions are often short-term in nature and are therefore subject to prompt profit-taking.  

Gold continues to trade above US$4,000 per ounce

While gold prices were still trading at US$4,232 per ounce on Thursday morning last week at the time of writing, they initially continued to rise to just under US$4,380 in Asian trading on Friday. However, this was immediately followed by the first price setback to US$4,186. On Monday, the yellow metal resumed its record chase, climbing to a new all-time high of US$4,381.50. On Tuesday, there was a sharp price correction, which caused gold prices to fall to US$4,005 this Wednesday morning. However, the round mark was then defended and, at the time of writing on Wednesday at 9 a.m., gold prices are hovering around US$4,130 per ounce.

The Xetra Gold price also showed stronger price fluctuations.

During normal trading hours, prices rose from €116.70 per gram on Thursday morning last week to a record high of €119.75 on Friday morning. After falling back to €116 on Friday, prices reached a new high of around €120.05 at the close of trading on Monday. Yesterday, prices then fell back to €113.40. This morning (Wednesday), Xetra Gold is expected to start trading at around €114.80 per gram.

As “feared” here last week, the gold market was recently overbought in the short term, so the current correction could be healthy for the market in the medium to long term. On Friday, data on US consumer prices in September will be released, which could potentially cause a stronger market reaction if they deviate significantly from expectations...

I wish all readers a relaxing weekend – and don't forget to set your clocks back. 

October 23, 2025 © Deutsche Börse AG