Gold's Dramatic Plunge: How We Profited from the Sell-Off

Author

Samuel Leach
October 22, 2025

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Morning Trader,

What a whirlwind 24 hours in the gold markets. We witnessed a historic, frenzied rally come to a screeching halt, with gold prices experiencing their largest single-day sell-off in over a decade. While many were caught off guard by the sudden reversal from all-time highs, for us at Samuel and Co Trading, it was a textbook opportunity that our strategies are designed to capitalise on.

Last night, I personally entered a short position on XAUUSD, after the main sell-off, riding the wave down to secure a £3,106.44 profit. This wasn't a lucky guess; it was a calculated trade based on our proven 15-minute trading strategy. Today, I want to break down exactly what happened in the market and how we identified and executed this trade.

The Anatomy of a Sell-Off: Why Gold Tumbled

After hitting a record high of over $4,380 on Monday, gold prices plunged more than 6% to near $4,080. This dramatic drop was a classic case of a market correction fueled by several key factors:

•Profit-Taking: After a massive 50%+ surge in 2025, the market was simply overheated. Investors who had been riding the rally decided it was time to cash in their profits.

•A Stronger Dollar: We saw a rebound in the U.S. dollar, which makes gold more expensive for foreign investors and typically pressures its price downwards.

•Shifting Sentiment: Renewed optimism around US-China trade talks and the end of the Diwali festival in India (a major gold-buying event) also contributed to the bearish sentiment.

For the prepared trader, this confluence of factors signalled a prime opportunity to short the market. The key is knowing what to look for.

Executing the Trade: My 15-Minute Strategy in Action

My approach to the markets is built on a multi-timeframe analysis. While the news provides the fundamental context, the charts tell us when to act. Here’s how I applied my 15-minute strategy to this gold trade:

  1. High-Timeframe Trend: On the 60-minute chart, I identified the initial signs of weakness and a break in the bullish structure. This gave me the high-level confirmation that the trend was likely to reverse and continue the downward momentum.

  2. Low-Timeframe Entry: I then drilled down to the 5-minute chart to pinpoint my exact entry. As you can see from my trading chart below, I waited for a clear break of support and a bearish confirmation candle before entering my short position at $4,125.76.

By combining these timeframes, I was able to enter with precision and confidence, riding the price down to $4,084.23, waking up to price hitting my target, although I could of squeezed more, I had a nice breakfast knowing I started the day with a win.

This is the power of a robust, repeatable strategy. It allows you to filter out the noise, identify high-probability setups, and execute with confidence, regardless of market volatility.

Learn the Strategy for Yourself

Navigating markets like these can be daunting, but with the right education, it becomes second nature. At Samuel and Co Trading, we've been empowering traders with these exact strategies since 2012.

If you want to learn how to identify and execute trades just like this one, I invite you to download our Free Online Beginner's Programme. It's packed with the foundational knowledge and strategies you need to start trading with confidence.

Don't just watch the markets move. Learn how to move with them.

To your trading success,

Samuel Leach Founder, Samuel and Co Trading