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Gold Update 22OCT2025: Wave 4 Correction is in Progress

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Sooner or later, both overbought conditions and bearish divergence tend to play out — and we’re seeing that now.

Gold just experienced a massive and surprising sell-off, with many stop-losses triggered.
The price dropped $300 in a single day, compared to its usual $50 range.

This likely marks the start of wave 4, as expected. Price briefly touched the bottom of the uptrend channel and bounced off quickly.

However, wave 4 is rarely straightforward.
It can take many corrective forms, such as a triangle or sideways consolidation.
It also tends to be larger than wave 2 and should become clearly visible on the chart.

The target range for wave 4 remains $3,750–$4,000. While $4,000 has already been touched, the corrective structure isn’t fully formed yet.

We should wait for wave 4 to fully develop before setting any expectations for wave 5.

Penafian

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