Gold Above Sell 2 Zones Suggests Profit-Taking, Not Trend Reversal

Published 08/10/2025, 14:40
Updated 08/10/2025, 14:50

The gold market has confirmed a powerful bullish breakout, trading at $4,068.30, up 1.6% on the day and marking a decisive shift above the critical $4,000 psychological and structural pivot. The Variable Price Momentum Indicator (VC PMI AI) model identifies this move as a continuation of the larger mean-reversion cycle that began at the Buy 2 Weekly level ($3,735) and accelerated once price surpassed the VC PMI Daily mean ($3,994). The rally aligns with the 30-day harmonic expansion pattern derived from the Square-of-Nine geometry, projecting targets between $4,125–$4,180 as the next critical resistance window.Gold Price Chart

From a structural perspective, the current price level is above both the daily and weekly Sell 2 zones ($4,046–$4,010), confirming an extended overbought condition. However, within the VC PMI framework, this zone represents not an immediate sell trigger, but rather a profit-taking region where short-term traders may lock in gains while maintaining a longer-term bullish bias. The VC PMI mean reversion equilibrium at $4,000–$4,025 now serves as the principal pivot. A daily close below this range would neutralize bullish momentum and open the potential for a retest of Buy 1 Daily ($3,973) or even Buy 1 Weekly ($3,822), depending on volatility compression.

The 30-day cycle projects an upcoming time pivot on October 28, coinciding with the seasonal harmonic that typically brings volatility expansion. Historically, this window often defines short-term tops or pullbacks within an ongoing bullish trend. The 360-day cycle, anchored to the 2024 primary low, converges on November 8, where time and price harmonics synchronize near the projected resistance band of $4,220–$4,280. This larger cycle turn suggests a potential high formation before a corrective phase into year-end, consistent with the longer Gann and Fibonacci timing arcs.

Gold Futures Projection-Oct 2025

  • 30-Day Cycle Turn: October 28, 2025 — expected short-term inflection point within the bullish phase.

  • 360-Day Cycle Turn: November 8, 2025 — major long-term time resonance where price and time could align for a macro reversal or acceleration.

The chart above fully integrates VC PMI AI pivots, Square-of-Nine harmonic targets, and time-based cycle turns, showing how the bullish trajectory into late October may reach the $4,125–$4,180 resistance window before the next time pivot.

The Square-of-Nine grid confirms geometric resonance at $3,735, $3,923, and $4,071, where each represents a 90° rotational expansion in price-time space. The breakout through $4,071 marks a transition into the next vibrational octave, targeting the 120° harmonic around $4,125–$4,180. If this level is cleared with strong volume, gold could enter a parabolic expansion phase leading into the 360-day window.

In summary, gold remains firmly within a bullish mean-reversion phase, supported by AI-based VC PMI confirmation, cyclical alignment, and harmonic resonance. Traders should monitor the $4,000–$4,025 control zone for trend validation and anticipate potential inflection around the October 28 and November 8 time pivots.

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