Metals
Key Takeaways
- The S&P 500, Nasdaq 100, Dow Jones, and Russell 2000 all reached fresh record highs during the week, as optimism around a U.S.–China trade truce boosted sentiment.
- Precious metals paused amid the rally in equities and improved risk appetite. Gold and silver consolidated after hitting earlier highs.
- The U.S. dollar held firm and yields moved higher, as easing tariff worries tempered some rate cut expectations.
- Crypto markets remained quiet compared to other assets. Price action was more consolidation than breakout as investors awaited clear policy signals.
- Nvidia surpasses the historic $5 trillion valuation, becoming the first company in the world to achieve this milestone.
- Apple becomes the third company in the world to reach a $4 trillion market cap.
US indices Break New Record Highs as the Federal Reserve Delivers a Second Rate Cut
The week kicked off strong for U.S. equities. On Monday, S&P 500 rose about 1.29% to 6,875, the Dow increased roughly 0.8% to 47,544, and the Nasdaq 100 climbed about 1.9% to near 23,637. These gains were driven by hopes that the trade truce between the U.S. and China would de-escalate tensions and support global growth, which boosted tech and industrial names.
On 29 October, the Fed announced a 25-basis-point interest rate cut, lowering the federal funds target range to 3.75 %-4.00 %. This second cut followed weak job growth signals, which tipped the balance of the Fed’s monetary policy toward easing. The cut was widely expected, so much of the market had already priced it in ahead of the announcement.
The market’s reaction was more muted and mixed than many hoped for. The S&P 500 ended nearly flat, the Dow Jones Industrial Average slipped 0.25%, while the Nasdaq 100 managed a modest gain of 0.19%. Though the cut itself was positive for risk assets, Fed Chair Jerome Powell’s press conference made clear that a further cut in December is not guaranteed, raising doubts about the next phase of easing.
Tech and AI-linked stocks led much of the upside. Looking ahead, the rate cut sets up a mixed narrative for U.S. Equities. A positive framework of cheaper borrowing costs and potentially looser monetary policy, but tempered by the slightly hawkish message from the Fed that further cuts are not guaranteed.
Precious Metals Remain Largely Under Pressure
Gold continued to trade within the high end of its range near $4,100 per ounce, but pulled back slightly from recent peaks, as traders took profits and rotated into equities. The precious metal is currently consolidating above psychological support around $4,000–$4,080. Silver showed a similar pattern of consolidation after earlier strong gains. Meanwhile, commodities and industrial metals saw mixed performance.
Gold’s slight pullback during the week reflected shifting investor sentiment following the Federal Reserve’s latest rate cut and comments suggesting a pause in further easing. The move reduced near-term demand for safe-haven assets like gold, while renewed optimism in U.S. equities encouraged some investors to rotate capital back into risk assets. However, the precious metal remains well-supported above the $4,000 per ounce level, as central-bank buying and geopolitical tensions continue to support prices. If inflation data in the coming weeks show renewed weakness, gold could retest its record highs as real yields fall again.
Silver mirrored gold’s movements but remained more volatile, trading between $45.56 and $49.36 per ounce during the week. Expectations of higher demand from the renewable-energy and semiconductor sectors are still keeping long-term sentiment bullish. Overall, both gold and silver appear to be in a healthy consolidation phase, setting the stage for another potential leg higher if the Fed signals that its easing cycle will continue.
US Dollar Index Nears 100 Level
In the Forex market, the U.S. dollar index (DXY) remained relatively stable to slightly stronger, especially after Powell’s statement about the uncertainty of a rate cut in December. EUR/USD dropped nearly 0.6% during the week from 1.1628 to around 1.1550 as the US dollar strengthened. The Japanese yen stayed under pressure, particularly against the dollar, as policy divergence and risk flows weighed.
The U.S. dollar index (DXY) rose nearly 0.8% from 98.84 to 99.70, finding support from the lower probability of a rate cut in December. According to CME FedWatch Tool, there’s currently a 35% chance that rates remain unchanged at the December 10th FOMC meeting. This helped prevent a deeper dollar selloff, as traders reassessed the timing of the next policy move.
GBP/USD dropped 1.27% during the week due to mixed U.K. economic data and speculation that the Bank of England might follow the Fed’s easing path later this year. Commodity-linked currencies such as the AUD and CAD saw modest gains, supported by recovering oil prices and improved risk sentiment. Overall, the forex market reflected a cautious sentiment between diverging central bank policies and shifting risk appetite following the Fed’s decision.
Key Economic Data of the week
- CB consumer confidence falls to 94.6, but comes higher than market expectations of 93.4
- Australian CPI inflation jumped to 3.5% in September from 3.0% in August
- Bank of Canada cuts interest rates by 25 basis points to 2.25%, in line with expectations
- The Federal Reserve cuts interest rates by 25 basis points to 4.00%.
- Bank of Japan keeps its benchmark interest rate unchanged at 0.5%
- The European Central Bank keeps the interest rate unchanged at 2.15%
- China’s Manufacturing PMI falls to 49.0 from 49.6
Major Economic Calendar Events for the Upcoming Week
| Date | Metric | Country | Previous | Time [Dubai] |
| Monday, 3 November | Consumer Price Index m/m | Switzerland | -0.20% | 11:30 AM |
| Monday, 3 November | Durable Goods Orders m/m | USA | 2.90% | Tentative |
| Monday, 3 November | ISM Manufacturing PMI | USA | 49.1 | 7:00 PM |
| Tuesday, 4 November | Interest Rate Decision | Australia | 3.60% | 7:30 AM |
| Tuesday, 4 November | JOLTS Job Openings | USA | Tentative | |
| Wednesday, 5 November | Unemployment Rate | New Zealand | 5.20% | 1:45 AM |
| Wednesday, 5 November | ADP Non-Farm Employment Change | USA | -32K | 5:15 PM |
| Wednesday, 5 November | ISM Services PMI | USA | 50 | 7:00 PM |
| Thursday, 6 November | Interest Rate Decision | UK | 4.00% | 4:00 PM |
| Thursday, 6 November | Unemployment Claims | USA | Tentative | |
| Friday, 7 November | Unemployment Rate | Canada | 7.10% | 5:30 PM |
| Friday, 7 November | Non-Farm Employment Change | USA | Tentative | |
| Friday, 7 November | Unemployment Rate | USA | Tentative |
Technical Analysis and Forecast:
Nasdaq 100 Technical Analysis
Nasdaq 100 continues to show strong bullish momentum, trading around 26,050 level after recently breaking above a short-term resistance near 25,800. The shorter moving averages (MA 5 and MA 10) are clearly trending above the longer 30-day moving average, confirming a sustained uptrend. The candles show consistent higher highs and higher lows, with only minor pullbacks that tend to find support near the 10-day moving average.
MACD supports this bullish bias. Unless there’s a sharp reversal, the index could retest the 26,300–26,500 zone soon and potentially break new highs. However, in the short-term, it’s important to monitor 25,600–25,700 as the nearest support area. A break below this level could trigger a correction toward the 25,000 level. Overall sentiment remains bullish while the price holds above the 10-day moving average.
Nasdaq Daily Chart 100
| Resistance | 26,240 – 26,255 | 26,300 – 26,30 | 26,450 – 26,467 |
| Support | 25,715 – 25,720 | 25,550 – 25,590 | 25,350 – 25,365 |
Bitcoin Technical Analysis
Bitcoin is currently trading near $109,700, bouncing off recent lows and mostly trading in a range after the sharp decline in early October. The overall price action appears corrective and slightly bearish in the short term, as the price remains below both the 10-day and 30-day moving averages, suggesting that selling pressure still dominates. The moving averages also show a potential bearish crossover, signaling continued weakness unless the price can reclaim the $112,000–$113,000 zone decisively.
MACD has recently turned positive, hinting at early signs of bullish momentum building up. If buyers manage to push prices back above $113,000, we could see further upside toward $118,000–$120,000. On the downside, failure to hold above $107,000 could reopen the path toward $103,000, which acts as a strong support area.
Bitcoin Daily Chart
| Resistance | $111,683 – $111,700 | $114,068 – $114,100 | $116,044 – $116,200 |
| Support | $106,329 – $106,350 | $105,380 – $105,400 | $103,133 – $103,400 |
Gold Technical Analysis
Gold is showing early signs of stabilization after a strong pullback from the historic high of $4,381 earlier this October. The price is currently hovering around $4,020, with candles forming a potential base above the $3,950–$4,000 support zone.
The moving averages show a mixed picture. The 5-day moving average is starting to flatten after an extended decline, while the 30-day moving average is still pointing upward. This suggests that gold is still in a consolidation phase, but a potential bullish move could be forming if the price can close consistently above the psychological level of $4,000.
MACD still shows bearish momentum, with the MACD line below the signal line, though the bars are getting shorter, which is an early sign of weakening bearish pressure. If gold manages to break above $4,080–$4,100, it could trigger a recovery toward $4,200. However, failure to sustain above $4,000 could expose the precious metal to another drop toward $3,900.
Gold Daily Chart
| Resistance | $4,093 – $4,100 | $4,161 – $4,200 | $4,248 – $4,260 |
| Support | $3,890 – $3,900 | $3,819 – $3,825 | $3,717 – $3,725 |
EURUSD Technical Analysis
EURUSD has been trending downward since mid-September after failure to maintain 1.1900 levels. The pair is currently facing a major support level at around 1.1540. Moving averages MA(5), MA(10), and MA(30) are sloping downward, confirming the short term bearish trend.
MACD indicates bearish momentum may continue as it remains mostly below the zero line.
Closing below 1.1540 with force could lead to further declines toward the next major support level 1.1380. However, a clear rejection of this level may open the door for EURUSD to resume its long-term uptrend toward 1.1700 and beyond.
EURUSD Daily Chart
| Resistance | 1.1671 – 1.1680 | 1.1727 – 1.1740 | 1.1778 – 1.1800 |
| Support | 1.1543 – 1.1550 | 1.1459 – 1.1470 | 1.1391 – 1.1400 |
