U.S. Dollar and Stocks Rise While Gold and Silver Plunge — Market Highlights

Market Overview

U.S. equities ended mixed on Tuesday. Strong corporate earnings lifted the Dow Jones Industrial Average to a new record high, driven by General Motors surging 14.8% and Coca-Cola advancing 4%. However, uncertainty over trade prospects weighed on tech and small-cap stocks, sending the Nasdaq lower while the S&P 500 closed flat. Apple extended its winning streak to three sessions, hitting another intraday record. Meanwhile, meme stock Beyond Meat skyrocketed 146%, posting a staggering 600% gain in just three days.

U.S. Treasury yields broadly declined, with the 10-year yield slipping nearly 2.5 basis points. The U.S. dollar index notched a third consecutive gain, rising 0.4%. In the cryptocurrency market, Bitcoin rebounded more than 6% from its intraday low.

The precious metals market saw a dramatic sell-off. Gold prices plunged over 5.7%, marking their largest one-day drop since 2013, while silver fell nearly 8% amid profit-taking and technical pullbacks. In the energy sector, WTI crude oil climbed 1.2% following reports that the Trump administration plans to purchase 1 million barrels for the Strategic Petroleum Reserve.

Hot Topics Ahead

● A Rare Meltdown in Gold and Silver Prices

Gold and silver posted their sharpest intraday declines in twelve and four years, respectively. Analysts warn that speculative long positions have likely built up excessively, making both metals vulnerable to corrections. The end of Indias seasonal buying cycle also added pressure. However, some strategists note that the fundamental backdrop supporting precious metals remains intact, suggesting that buying interest may limit further downside.

● Europe Calls for “Immediate Ceasefire,” Challenges Trumps Position

European leaders issued a joint statement on the 21st, urging an immediate ceasefire and peace talks based on the current front lines. The ceasefire optimism triggered a sell-off in safe-haven assets — COMEX gold futures dropped nearly 2%, and silver fell around 5%. Yet, Russias foreign minister countered that such proposals ignore the root causes of the conflict and contradict prior U.S.-Russia agreements. This development casts uncertainty over the upcoming preparatory meeting and the “Trump-Putin summit” that Trump announced would take place “within two weeks.”

Key Events to Watch

22:30 (GMT+8) — U.S. EIA Crude Oil Inventories (Week ending October 17)

04:00 (GMT+8) — Federal Reserve Governor Barr speaks on Financial Inclusion