Safe-Haven Demand Surges as Gold Hits New Highs; Oil, Copper, and Crypto Plunge

Market Overview

U.S. equities were mixed on Tuesday, with the Dow Jones Industrial Average the only major index closing higher. Technology and semiconductor stocks dragged the S&P 500 and Nasdaq lower, led by Nvidias 4% drop. In contrast, luxury conglomerate LVMH rallied sharply after reporting stronger-than-expected earnings.

In fixed income, the 10-year Treasury yield briefly fell below 4.0% before stabilizing near the flat line. The U.S. dollar index retreated, while the offshore Chinese yuan weakened. In crypto markets, selling pressure intensified — Bitcoin tumbled more than 5%, and Ethereum slumped over 9%. Commodities saw diverging trends: gold extended its record-breaking rally, whereas crude oil slid to a five-month low amid mounting concerns over excess supply.

Hot Topics Ahead

● U.S. Equity Allocation Turns Overweight for the First Time in Eight Months

According to the latest Bank of America survey, about 54% of fund managers believe technology stocks are excessively valued — a sharp rise from last month. Despite persistent worries of an AI-driven bubble, equity allocation to U.S. markets climbed to the highest level in eight months, returning to levels seen before tariff concerns resurfaced.

● Goldman Sachs: Even Modest Outflows Could Trigger a Sharp Pullback in Silver Prices

Goldman Sachs noted that while silver‘s medium-term outlook remains constructive thanks to expected Fed rate cuts and renewed inflows, its short-term volatility and downside risks are far greater than gold’s. The silver markets liquidity is thin — roughly one-ninth the size of gold — amplifying price swings. Moreover, silver lacks the structural central-bank demand that supports other precious metals, meaning even small capital outflows could cause a disproportionate correction.

Key Events to Watch (GMT+8)

• 20:30 – U.S. October New York Fed Manufacturing Index

• 21:30 – Fed Governor Milan speaks

• Overnight:

• 00:30 – Fed Governor Milan speaks at Nomura Research Forum

• 01:00 – Fed Governor Waller delivers remarks on Artificial Intelligence

• 01:35 – 2025 FOMC voter, Kansas City Fed President Schmid speaks

• 02:00 – Federal Reserve releases Beige Book on current economic conditions