Investors return to XAUUSD after a deep correction

XAUUSD remains in focus after a sharp decline and signs of market stabilisation, with prices currently at 4,129 USD. Discover more in our analysis for 23 October 2025.

XAUUSD forecast: key trading points

• Investors started to lock in profits after gold reached record highs
• Pressure on gold increased due to the anticipation of upcoming talks between Donald Trump and Xi Jinping
• Expectations that the Federal Reserve will cut rates twice more this year continue to support XAUUSD quotes
• XAUUSD forecast for 23 October 2025: 4,265

Fundamental analysis

XAUUSD prices are undergoing a correction after a sharp two-session decline that resulted in more than 8.5% losses. Selling pressure on gold intensified ahead of the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping. Trump’s more conciliatory tone towards China reduced demand for gold as a safe-haven asset.

Another factor behind the decline was profit-taking after gold reached new all-time highs, coupled with a stronger US dollar, which made the precious metal less attractive.

Nevertheless, despite the deep correction, gold continues to find support amid expectations that the Federal Reserve will deliver two more rate cuts before the end of the year. These projections maintain medium-term demand for XAUUSD.

XAUUSD technical analysis

XAUUSD prices are correcting after a sharp two-session drop, finding support near the lower boundary of the ascending channel and showing signs of stabilisation.

The XAUUSD price forecast indicates that a Double Bottom reversal pattern may be forming, suggesting a possible recovery move. If prices successfully rebound from current levels, the next upside target could be 4,265 USD. The Stochastic Oscillator has turned upwards from oversold territory, confirming weakening bearish momentum and strengthening the case for a corrective rebound.

A consolidation above 4,195 USD would increase the likelihood of a bullish scenario, with gold moving into a recovery phase towards 4,265 USD.

Summary

The XAUUSD forecast for 23 October 2025 suggests that despite the recent decline, expectations of further Fed rate cuts create conditions for a potential recovery. A breakout above 4,195 USD would increase the likelihood of renewed bullish momentum, with the next target at 4,265 USD.

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