Gold Futures Analysis for Today with tradeCompass (October 28, 2025)
Bullish above: $3,950.7 (see the condition described below for a possible entry, at your discretion)
Bearish below: $3,938
Primary Bias: Gold Buy-the-Dip Trade Plan Coming Possibly Very Soon
Gold Futures Market Context Now
Gold has dropped nearly 10% from its all-time high, with futures (GC1!) testing the October 9, 2025 low at $3,957.9 and converging near the $3,950.7 round number, a zone loaded with liquidity. Recent sessions confirm a continuation of the sell-off noted in Gold breaks $4,000 and continues lower, and sentiment remains pressured after US-China deal optimism weighed on safe-havens.
Still, as highlighted in investingLive’s European Markets Wrap, the move appears more liquidity-driven than fundamentally bearish. The $3,948.5–$3,964.5 range aligns with the October 5 value-area low, suggesting the market is approaching a technical area where base formation or a rebound could emerge.
The tradeCompass Buy-the-Dip Plan on Gold Futures
The concept behind today’s setup is straightforward:
watch for a liquidity sweep below $3,950.7 — ideally a cross down through $3,947 (for example, to $3,946 or slightly lower), followed by a decisive cross back up above $3,947.
If that occurs, the plan activates with an entry around $3,947.5.
Stop-Loss: $3,938 (alternative tighter stop: $3,942 after TP1)
Risk: ~9 points
Profit-Taking Roadmap for Gold Traders Today (Important to Follow as Part of the Methodology!)
Each target secures a partial exit to lock in gains and protect capital:
• $3,958 — First partial at 50% of position, then move stop to breakeven
• $3,983.5 — 10%
• $4,004.7 — 10% (above 4,000 round number and near Oct 8 POC)
• $4,057 — 10%
• $4,127 — 10%
• $4,271 — final 10%
Blended Risk-Reward Ratio (RR): ≈ 5.8:1 (this is very high)
The trade offers a compelling upside even if gold forms only a lower double top, without needing a new all-time high.
Key Levels to Monitor for Gold Futures Today
• $3,950.7 – activation level; liquidity trigger
• $3,947 – critical cross-down reference point
• $3,938 – invalidation line
• $3,920.7 – prior early-October high
• $3,908 – Point of Control from Oct 3 session
• $3,885 – lower extreme of October volume profile
Educational Insight: Liquidity Hunts and Round Numbers
In markets like gold, round numbers act as magnets for stop orders. Market makers and algorithms often drive price just beyond these levels — a phenomenon called a liquidity hunt — to trigger stops and fuel the next move. When price dips below a psychological line such as $3,950 and then recovers, it often signals the exhaustion of selling pressure and a potential reversal setup.
tradeCompass Trade Management Rules
One trade per direction per tradeCompass plan. Do not over trade, do not revenge trade, no multiple attempts. Stick to the plan.
After TP1, move your stop to entry to lock in safety and manage the runner.
Stops should always remain within the same directional zone — never beyond the opposite threshold ($3,938 in this case).
If price breaches the opposite threshold, the setup is invalid. Note that this tradeCompass does not provide further bearish targets if bearish threshold is activated by price going below the bearish threshold of $3,938
Adjust to your trading instrument (GC, MGC, or CFD equivalents) and risk preference.
Disclaimer for Gold Traders
This analysis represents decision-support commentary from tradeCompass on investingLive.com, not financial advice. Trading futures involves substantial risk and may not suit all participants. Always evaluate your own risk tolerance and market conditions before taking any position.
Like this trade idea? Join https://t.me/investingLiveStocks where we dish out daily trade ideas to consider (always at your own risk, these are for educational purposes and we never provide financial advice. Your capital is always at risk when trading gold and other financial instruments. Do not risk more than what you might lose).
