A Day Gold Bugs Won’t Forget
October 21st, 2025, will probably go down in history as a day gold bugs remember for a long time.
Why? Because gold prices witnessed one of the biggest, most sentiment-crushing declines in years — the yellow metal dropped over five percent in a single session, marking one of the steepest falls in recent history.
For those who’ve followed gold for a while, this felt like déjà vu — it brought back memories of the carnage between 2012–2015. In 2020, gold prices tumbled a bit too, and it was nerve wrecking. But there was some relief in all that printing by central banks and free money by governments, that gold prices will recover as value of money got destroyed.
Now the big question being asked: Is gold done?
Is it time to pack it up and move on to something else, or is there still room for growth?
If You’re a Long-Term Investor…
If you’re in gold for the long haul — say, 10 to 20+ years — here’s the reality:
If you genuinely believe that governments around the world will suddenly get their act together, central banks will stop printing money, fiat currencies will remain safe havens, bankers will stop making mistakes, and geopolitical risks will disappear — then yes, the gold trade is probably over.
But if you think none of those problems are going away anytime soon, there’s not a lot of reason to panic.
Sure, gold prices have stretched a bit. Volatility is part of investing. The yellow metal will continue doing what it’s done for centuries — preserve value when everything else looks uncertain. In the near term, volatility (if it follows) may even provide some great opportunities if you are looking to add.
If You’re a Trader…
Start looking at the charts.
When something moves too fast and too high, it’s usually a crowded trade — more speculation than real positioning. That’s what happened with gold.
You see, there was a prevailing long-term uptrend in gold, and it started years ago. It was tested around 2015–2019, again in 2022, and then came the acceleration in 2023 — a move you could call a “bump and run.”
In 2024, the trend got stronger.
And since early 2025, it went into overdrive.
So, what’s next?
If gold prices come back to retest the long-term trendline that began little before 2025, we could be looking at a move below $4,000.
Remember, there was a breakout — I talked about it here.
If the recent rally was just an overextension from that breakout, it’s not out of the question to see gold prices drop toward $3,500.
What You Also Have to Remember
When an asset performs this well, people take profits.
If gold prices start falling, profit-taking can easily exaggerate the downside — it’s how markets work.
On the upside, the key level to watch is around $4,380.
Gold would need to break above that to attract new buyers.
Until then, expect extreme choppiness — it’s going to be volatile.
Where Do I Stand?
I’ve been bullish on gold since 2015. Back when everyone called it a “pet rock” or a “useless asset,” I said gold was the opportunity of a lifetime.
Fast forward to today — everyone’s bullish.
Almost every major bank is forecasting higher gold prices. Social media is filled with gold bugs gloating and raising targets left and right.
I’m still bullish for the long-term, but let’s be honest — there’s a lot of froth in the market right now. That means volatility is coming.
We could easily see gold prices above $4,500, but we could also see it drop to $3,400 or lower.
Why I Remain Bullish on Gold Long-Term
Here’s why my conviction on gold prices changed:
- Central banks keep buying gold — and they’re not selling anytime soon.
- Central banks are addicted to printing money.
- Governments around the world have lost the ability (or will) to balance budgets.
- Gold supply faces headwinds — no major discoveries, and new mines take years to build.
- The average person has less trust in money — people are starting to question whether their cash holds real value.
- The world is becoming bipolar — and in such a divided world, people seek assets that protect them from the system. What do you do if the stock market is forced to close tomorrow? Or, you get taxed 50% on assets that are in the financial system?
- We still haven’t found a way to shock-proof the economy or financial system — gold provides that resilience.
Bottom Line
Gold isn’t dead.
But the road ahead could be volatile and look messy — just like it always has been.
If you’re in it for the long game, patience can pay. If you’re trading, stay disciplined.
The story of gold prices isn’t over — it’s just entering its next chapter.
Oh, and miners could get crushed in case gold prices route is downwards between now and next few quarters.