The plunge in Gold: "Healthy Correction” or the Start of a Metals Meltdown

Call it clairvoyance or pattern recognition—I’ve been waving the red flag on the Labor Day rally in metals for over a month, forecasting a pump-and-dump unwind in silver and gold. Lo and behold, spot prices in gold cratered below $4,000 overnight, following a brutal 5.7% single-day plunge on October 21—the sharpest one-day drop in 12 years. Not an entirely bogus headline. Didn’t I warn that copper’s crash was a shot across the bow? Check my July 31 call, "Copper: A Warning of Things to Come"? 

 

Headlines and Hypocrisy

• Biggest gold slump in 12 years driven by profit-taking and fading safe-haven demand newindianexpress.com   
  
  True for that October 21 flash crash, but gold’s still up 52% YTD—context matters.
  
  
• Citi downgrades short-term gold, silver price forecasts msn.com
  

  Who do you think Citigroup is trying to help slashing gold to $3,800/oz and silver to $42/oz"?  I'll let you ponder that...

 The "Healthy Pause" Myth: that's Bear Bait

A healthy correction does not begin with a flash-crash.

A 15% drop in little more than a week is NOT healthy - it's bear bait. The "healthy" spin is short-seller propaganda, echoed by outlets like Finbold, hyping 30% crash scenarios to flush longs. We've seen this story 1000 times before (yawn). 🥱

Short Interest in Rare Earths tells the real Story  

Short interest is off the charts 8 months, in $GLD (paper gold)

Rare earths, and gold miners being pummeled, on massive short interest... #LiveAndLearn pic.twitter.com/nbc7G1Zxh9

— Veteran Market Timer (@3Xtraders) October 27, 2025

 

No Crash, Just an already Crowded Short Trade   

I could flood the page with broken charts, but we're still waiting on a valid chart pattern. 

So, far I've only identified: 

• 5 wave move 
• A possible range. 
• A likely down-turned triangle pattern.  

 It always takes time for a pattern to develop after a reversal

Gold and gold miners continue to be dumped -20% of the recent highs $GDXJ $GLD pic.twitter.com/WDcScDqf2r

— Veteran Market Timer (@3Xtraders) October 27, 2025

1 Hour Gold - This morning view doesn't look any worse, given the broken 4000 - psychological support - level 

 

Coming from someone who predicted this pumped rally’s crash, I'll tell you, "the short side of the trade is already crowded". In a real gold/miner crash, $DUST, $JDST would see 40% moves. Despite the headlines, this doesn’t resemble a full crash; it’s a warning flare.

The Broader Market as an After-thought   

Most investors are too busy chasing the AI asset bubble, to notice the flattened forest through the trees.

See my latest warning in that realm in my spookiest Halloween forecast ever:

Sunday, October 26, 2025

The Halloween Monster that Devoured Early October Gains, Threatens to Wreak More Havoc.

Take Care, AA 

 

P.S. Get my most recent warning on trading Gold Miners ETF — [linked in the left-side menu](Not financial advice — DYOR, trade at your own risk.)

 

 

 

 

 

 

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