Chris Vermeulen, Chief Market Strategist at The Technical Traders, has warned that gold could be on the verge of a sharp correction reminiscent of the 2008 financial crisis.
He noted that following a historic bull run, gold may face a pullback ranging from 30% to 35%, with some scenarios extending to 45%, based on Fibonacci retracement analysis and historical market patterns.
Notably, gold has been among the best-performing assets of 2025, with investors turning to the precious metal for its safe-haven appeal. However, in recent weeks, the metal has recorded significant outflows, trading at $4,114 as of press time, up more than 56% year to date.
Gold YTD price chart. Source: TradingViewIn an interview with David Lin published on October 22, Vermeulen noted that the peak for gold has not yet been clearly established.
Investors should anticipate the metal reaching a top before a significant correction begins. Using past trends as a guide, a pullback of 20% to 45% is typical during the natural ebb of major asset cycles.
Gold’s sweet spot
Such a correction could see gold’s price retreat to what the analyst described as the “sweet spot,” a range determined by retracement levels between 38% and 61%.
While the correction is expected to be sharp, it is unlikely to last as long as the post-2011 stagnation period.
Vermeulen suggested the pullback could be violent but relatively short-lived, setting the stage for a strong rebound once market conditions stabilize.
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Source: https://finbold.com/gold-set-for-a-2008-style-violent-pullback-warns-strategist/
