The Safe Haven Wind Down | Bulletin

The Safe Haven Wind Down | Bulletin

As risk sentiment returned to equities this week, both Gold and Silver saw significant sell-offs following speculation that the US may remove tariffs on China. This speculation led US stocks to reach new all-time highs, with the Dow Jones gaining over 2.3% this week, while safe-haven assets Gold and Silver dropped 2.3% and 5.2%, respectively.

Though the tariff removal has not been confirmed by US Trade authorities, market speculation continues to drive the trading environment. Gold and Silver now trade at key support levels, with Gold dipping to the October 1st low of $1,460 per ounce. Buyers may be looking for opportunities to “buy the dip” or capitalize on short-term reversals. The chart indicates a consistent range in Gold’s performance over the past months, with bulls eyeing a potential retracement towards $1,475.

GBP/USD Struggles at 1.28 Level

The Bank of England’s meeting yesterday saw two MPC members vote for an interest rate cut, weighing on GBP bulls and pushing GBP/USD to new two-week lows. The 1.28 level remains a key point, with bears aiming to break through this handle. BOE Governor Mark Carney highlighted risks to UK growth and suggested that a rate cut could be considered to support the economy in the face of a potential downturn.

Other Key Events:
RBA Update: The Reserve Bank of Australia held interest rates, stating that the economy is slowly recovering, with the Aussie Dollar eyeing the 70 cent mark against the US Dollar.
US Stocks: US equities continue to trade at all-time highs, buoyed by optimism, though upcoming tech earnings could shift the market momentum.