Technical analysis by EmmaChartist about Symbol PAXG: Sell recommendation (10/22/2025)

Hello everyone, the gold market just experienced a dramatic session, with the front-month futures contract falling over 5.39% in a single day, marking the deepest drop since June 2013. This sharp correction follows an extended period of rapid gains, forcing many traders to reassess the short-term trend. Main reasons behind the sharp drop Correction after strong growth: Gold has surged over 128% from its 2011 baseline, but the lack of intermittent pullbacks created expectations for a significant retracement. When the correction occurred, it happened quickly and steeply, just as many veteran traders anticipated. Divergence with silver: Although silver fell 7.2%, its decline was “modest” compared to gold. Gold’s parabolic rise contrasted with silver’s steadier gains, reinforcing the likelihood that gold would continue adjusting while silver maintained a sustainable upward trajectory. Historical surge dynamics: From lows around 2,500 USD/oz, gold soared past 4,200 USD with hardly any meaningful consolidation. A long-term surge without pullbacks almost inevitably leads to sharp reversals, clearly illustrated by yesterday’s drop. With the Double Top pattern fully formed and the neckline broken, I expect gold could fall to the strong support zone around 4,000 USD or lower if the decline continues. Current resistance stands at 4,200 USD, a level difficult for gold to reclaim in the short term. The market is confirming a downtrend, so traders should monitor the support zones closely to identify optimal entry points. Do you think this is a buying opportunity at lower gold prices or just a temporary dip? Share your thoughts below!