|

Gold price’s powerful monthly reversal

Gold, silver, and mining stocks are not doing much, but at the same time, today’s session is very meaningful.

This is the case because of how the precious metals sector is moving lower today, because of what the USD Index is doing, and given how it all fits gold’s big picture. In short, my gold price forecast for November 2025 remains up-to-date.

Gold, silver, and miners moved lower today, and miners are leading the way. Taking a closer look at the most recent upswing reveals that miners were the first to move higher, and silver caught up. This is typical for movement in the precious metals sector, and since silver has already caught up, it seems that the declines can now continue.

USD index rises as sentiment turns

The USD Index is moving higher slowly but surely. It started to move higher after the Fed cut rates – just like it did in September. Back then, it rallied for a few weeks, so it looks like this short-term upswing has only begun.

But… That’s not even the point. The point is that the USD Index declined severely since April while it should have moved higher given the tariff announcements and then their implementation. Instead, the sentiment kept worsening until it moved to the extreme. Remember my Peak Chaos theory? That the markets already discounted the max amount of chaos and that now they are going to reverse? I wrote about that too early with regard to the precious metals market, but it worked like a charm for the USD Index.

Anyway, just like I wrote yesterday – when the rally in the USD Index finally becomes obvious to everyone, the PMs can truly slide. And given that we’re about to see a clear monthly gain in the USD Index.

From the long-term point of view, it means that the tiny breakdown below the rising red support line was invalidated and that the move below the 38.2% Fibonacci retracement based on the 2008 – 2022 rally was also invalidated.

In other words, the USD’s short-term rally is most likely just a small beginning of a huge upswing.

It seems that taking profits from the long-term investments and from half of the insurance capital (in gold and silver) when gold was at about $4,150 and silver was above $50 was a great idea.

When the USD Index finally confirms its breakout above 100, things will get really interesting, and many USD bears will be extremely surprised by the outcome.

History may repeat 2011

Speaking of monthly performance, we’re only several hours before the end of the month and we can see that in all likelihood we’re going to see a powerful monthly (!) reversal in gold in the target area that I had featured on Oct. 16.

Quoting my Oct. 16 Gold Trading Alert:

On the above chart, we see that gold moved to – and even a bit above – its 1.382 Fibonacci extension based on the 1999 – 2011 bull market.

It’s also at – actually a bit above – the upper border of its very long-term, rising trend channel. All this while being extremely overbought. And while the USD Index is just waiting to soar.

All this creates a situation in which all those recent big gains can be reversed shortly and followed by even bigger and more volatile declines.

Remember – we saw something similar in 2011 and back then silver erased two months of gains in one week.

Gold is now “just” $200 lower than it was when I had written the above and given the monthly reversal that is about to form, the really big declines are just ahead. This would perfectly fit the scenario in which the USD Index rallies profoundly.

Summing up, gold had a magnificent run-up and so did silver, however, it seems that this rally is over. Fortunately, this creates unique opportunities.


Want free follow-ups to the above article and details not available to 99%+ investors? Sign up to our free newsletter today!


Want free follow-ups to the above article and details not available to 99%+ investors? Sign up to our free newsletter today!

Author

Przemyslaw Radomski, CFA

Przemyslaw Radomski, CFA

Gold Price Forecast

Przemyslaw Radomski, CFA (PR) is a precious metals investor and analyst who takes advantage of the emotionality on the markets, and invites you to do the same. His company, Sunshine Profits, publishes analytical software that any

More from Przemyslaw Radomski, CFA
Share:

Editor's Picks

AUD/USD climbs toward 0.7000 after strong China data dump

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery toward 0.7000 in Monday's Asian trading. Strong Chniese Q3 GDP and activity data for September strengthen the pair's advance, following RBA Assistant Governor Chris Kent's hawkish remarks.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold holds firm below $4,200 on falling US yields

Gold holds gains but remains below the $4,200 mark in the European session on Monday. US Federal Reserve Chair Kevin Warsh’s unwillingness to provide any cues on further policy moves led to a reduction in odds for policy tightening later this month. Moreover, the recent sharp retracement slide in US government bond yields from multi-year highs, acts as a tailwind for the non-yielding bullion.

Cardano risks 15% downside as retail demand, bullish momentum wane

Cardano (ADA) is trading above $0.2200 at press time on Monday, holding steady after a 12% decline the previous week. The altcoin is losing retail interest as the notional value of active ADA futures positions declines. The technical outlook for ADA suggests a downside bias following the bearish breakout below a near-term support trendline last week.

What to expect in the week ahead
Investors are still digesting last week’s price action as we start a new week. US stocks sold off sharply, with the Swiss and UK indices attracting inflows as tech sold off. Sovereign bonds, particularly Treasuries, rallied and acted as a safe haven as the AI trade suffered another bout of volatility.
Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff
Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.