Last night, the market witnessed a broad and powerful correction as investors rushed to liquidate both assets and contracts tied to the Federal Reserve’s interest rates.
Although this morning saw a slight rebound, the move signals that investors have begun gradually pulling out of the market ahead of Q3’s close, positioning themselves for the final quarter of the year. This highlights how Q3 has been an exceptionally strong and positive quarter for both gold and equities.
However, the wave of profit-taking and large-scale capital outflows could drain liquidity from the market, trigger a sudden spike in interbank rates, and ultimately increase short-term borrowing costs.
As a result, the final days of September are expected to bring heightened volatility as markets set up for the last quarter of 2025. Similarly, gold may also face unexpected dips, like last night’s move, in order to establish a solid support zone before targeting the $4,000/oz milestone by year-end.
Technical Analysis
Gold is currently attempting a rebound after plunging to the $371x level last night. This move has created a short-term downward wave for gold. The key level investors should watch lies between $3747 – $3750, where the EMA20 and EMA50 intersect.
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If gold fails to break above the $3747 – $3750 range → Sell down toward $3700/oz.
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If gold breaks through $3747 – $3750 → Buy and chase toward the $379x level.
Trí Hùng
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