31/10/2025 Daily Reports
- Gold prices hover around $4,000/oz after briefly surging 2.4% in the previous session, halting a four-day losing streak.
- US–China trade truce provided short-term relief but failed to ease concerns over long-term strategic rivalry between the two global powers.
- Chinese President Xi Jinping emphasized the importance of stable supply chains following his meeting with US President Donald Trump.
- Bullion remains 9% below its record high of $4,380 on October 20, pressured by reduced expectations of further Fed rate cuts.
- Fed Chair Jerome Powell’s hawkish tone—warning that a December rate cut is not guaranteed—has curbed investor optimism.
- Gold-backed ETF outflows continued for six consecutive days, the longest stretch since April, reflecting waning speculative demand.
- Analysts at Westpac Bank expect a potential pullback toward $3,750 amid a mix of hawkish Fed signals, easing geopolitical tension, and ETF withdrawals.
- Despite recent weakness, gold has gained over 50% year-to-date, fueled by risk-averse investors and a 28% surge in central bank purchases during Q3.
- Market outlook: Analysts suggest uncertainty will continue to support dip-buying interest through the rest of the year.
What’s Next?:
Gold’s resilience amid shifting geopolitical and monetary dynamics underscores its enduring role as a hedge against uncertainty. While the near-term correction seems technical, the long-term narrative of diversification and central bank demand remains firmly intact.
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U.S. equities slipped on Thursday as renewed concerns over soaring artificial intelligence spending and cautious Federal Reserve signals weighed on sentiment. Meta’s 11.8% plunge — its steepest in three years — came after the company projected significantly higher capital expenses tied to AI investment. Microsoft also fell 3.5% following record quarterly spending and a warning that costs will rise further, dragging down broader tech shares. The sell-off followed a four-day streak of record highs driven by strong earnings and optimism around monetary easing, but Thursday’s retreat underscored the fragility of those gains amid rising cost pressures in the AI race.
Adding to uncertainty, the Fed cut rates by 25 basis points as expected but hinted that another move in December was “not a foregone conclusion,” tempering hopes for rapid easing. Meanwhile, a limited U.S.-China trade agreement offered little relief, even as President Trump and President Xi agreed to ease select tariffs and maintain critical supply flows. Investors now turn to upcoming earnings from Apple and Amazon, with markets watching whether AI enthusiasm can sustain momentum in the face of mounting cost and policy headwinds.
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- Global sentiment is being shaped by Fed policy, big-tech earnings guidance, currency trends, and U.S.–China trade headlines. These remain the main catalysts for cross-market moves in the Nasdaq, DAX, and Nikkei today.
- U.S. futures rose as Apple and Amazon’s upbeat forecasts lifted sentiment and eased post-selloff anxiety. The earnings season, especially for the Magnificent Seven, is driving Nasdaq volatility. The Fed’s 25 bps rate cut (Oct 29) and Powell’s cautious tone about future easing are causing rapid shifts in rate and tech valuation expectations. While overall U.S. equity inflows slowed, tech funds continue to attract capital, amplifying moves in large-cap names.
- European stocks opened softer amid mixed corporate results and upcoming inflation data. The DAX trades near two-week lows (~24,000) as investors take profits and position cautiously. Eurozone inflation continues to ease toward 2.1%, lowering expectations of further ECB tightening and supporting rate-sensitive cyclical stocks, while exporters remain focused on EUR movements.
- The Nikkei hit new record highs, driven by tech, AI, and semiconductor stocks, supported by a weaker yen that boosts exporter earnings. Optimism around domestic stimulus and AI demand continues to fuel Japan’s market and broader Asian risk appetite.
