Core Viewpoint - The precious metals market is experiencing a sell-off, primarily driven by technical selling and a combination of factors including overbought conditions and changes in investor appetite [5][3]. Market Dynamics - Prices have been in overbought territory since early September, with a rapid increase from approximately $3,500 to over $4,000 per ounce [3]. - There has been a significant accumulation in exchange-traded product (ETP) flows, indicating a broadening investor base in the gold market [4][3]. - The recent Diwali festival, which occurred on Monday, has also influenced buying patterns in both gold and silver [4]. Price Forecasts - The company forecasts a quarterly average gold price of $4,000 per ounce for Q4, with expectations of regaining momentum into 2026 and reaching an average of $4,488 per ounce for the year [7]. - A healthy correction is currently observed, with potential dips below $4,000 per ounce anticipated [8]. Technical Analysis - The next technical support level is identified at $3,900, with further support around $3,700 [9]. - The physical market's demand, particularly from China and India, has not been adequately tested on the downside, which will be crucial for future price stability [9][10].