Global stock markets fell, and gold prices weakened.
2025-11-04 23:20:07
Gold and silver prices weakened during Tuesday's (November 4) morning trading session in the United States, while global stock markets were declining. It wouldn't be surprising if strong selling pressure on U.S. stock indices during the day's trading session fueled risk aversion and drove a rebound in gold and silver prices. December gold futures (typically trading at a premium of ten dollars to spot gold) fell $55.90 to $3,958, while December silver futures fell $1.104 to $46.945.
Wall Street executives warned that stock market valuations were too high, causing global stock markets to fall.
Global stock markets are currently facing significant selling pressure, with US stock indices expected to open sharply lower. This is due to Wall Street's concerns about high stock valuations and a potential bubble in artificial intelligence stocks. Wall Street CEOs have stated that investors should be prepared for a market decline of over 10% within the next 12 to 24 months, and such a correction could be a positive sign.
At a financial summit hosted by the Hong Kong Monetary Authority today, Mike Gitlin, President and CEO of Capital Group, stated that corporate earnings are strong, but "valuation is a challenging issue." When asked whether stock market valuations are undervalued, fair, or overvalued, Gitlin said that most people "would consider them to be between fair and overvalued, rather than undervalued and fair." He added that a similar situation exists with credit spreads. Bond traders are particularly concerned about private lending transactions, which may lack a solid financial foundation.
Morgan Stanley CEO Ted Pick and Goldman Sachs' David Solomon also agreed with Gitlin's view, believing that a significant sell-off is likely in the near future, and stating that pullbacks are a normal feature of market cycles.
Another worrying sign was that Palantir Technologies raised its annual revenue forecast to $4.4 billion, and its third-quarter sales exceeded analysts' expectations. In the quarter ending in September, the company's revenue grew 63% to $1.18 billion; excluding certain items, earnings per share were 21 cents. However, despite the strong quarterly results, the company's stock fell about 3% in after-hours trading due to market concerns about its valuation, given that its stock had previously hit record highs.
Other overnight news: Brazil cracks down on illegal gold miners
With the support of Interpol, Brazilian police destroyed hundreds of dredgers used for illegal gold mining along the Madeira River. This is one of the largest coordinated operations to date against criminal networks in the Amazon basin.
Interpol said law enforcement officers dismantled 277 floating mining rafts, valued at approximately $6.8 million. Officials said that, including the lost gold, equipment, and environmental damage, the organized crime group suffered a total economic loss of approximately $193 million.
The US government shutdown may set a new record for the longest in history.
With the deadlock between Democrats and Republicans extending into the new month, this week's US government shutdown could set a new record for the longest in history. The Associated Press reports that "millions of people may lose food assistance benefits, Medicaid is about to expire, and the two parties have barely engaged in substantive negotiations on how to end the shutdown."
In an interview, President Trump stated that he "will not be coerced by Democrats"—who are demanding negotiations to extend the expiring Affordable Care Act subsidies. President Trump echoed the position of congressional Republicans, saying that negotiations would only take place after the government reopens.
Trump stated that Democrats "have lost their way" and predicted they would compromise with Republicans. "I think they have to compromise," Trump said. "If they don't vote (to reopen the government), that's their problem."
Trump's remarks suggest the government shutdown could last for some time. Federal workers, including air traffic controllers, face another pay freeze, and the continued access of the 42 million Americans receiving federal food assistance remains uncertain. Senate Democrats have voted against reopening the government 13 times, insisting that Trump and Republicans negotiate with them first.
Technical Analysis of December Gold Futures
(COMEX Gold Daily Chart Source: FX678)
From a technical perspective, the next upside target for December gold futures bulls is to push the closing price above the key resistance level of $4,100.00. The next short-term downside target for bears is to push futures prices below the key technical support level of $3,800.00.
The first resistance level is seen at this week's high of $4043.10, with further resistance at last Friday's high of $4059.90. Support is at $3950.00.
Technical Analysis of December Silver Futures
The next upside target for December silver futures bulls is to push the closing price above the key technical resistance level of $50.00. The next downside target for bears is to push the closing price below the key support level of $45.00.
The first resistance level is seen at $49.00, with further resistance at $49.50. The support level is at $46.50.
Note: Two main pricing mechanisms in the gold market
The gold market primarily uses two pricing mechanisms: the first is the spot market, which offers prices for immediate purchase and delivery; the second is the futures market, which determines the price for delivery on a future date. Due to year-end position adjustments and market liquidity factors, the most actively traded gold futures contract on the Chicago Mercantile Exchange (CME) is currently the December delivery gold futures contract.
Wall Street executives warned that stock market valuations were too high, causing global stock markets to fall.
Global stock markets are currently facing significant selling pressure, with US stock indices expected to open sharply lower. This is due to Wall Street's concerns about high stock valuations and a potential bubble in artificial intelligence stocks. Wall Street CEOs have stated that investors should be prepared for a market decline of over 10% within the next 12 to 24 months, and such a correction could be a positive sign.
At a financial summit hosted by the Hong Kong Monetary Authority today, Mike Gitlin, President and CEO of Capital Group, stated that corporate earnings are strong, but "valuation is a challenging issue." When asked whether stock market valuations are undervalued, fair, or overvalued, Gitlin said that most people "would consider them to be between fair and overvalued, rather than undervalued and fair." He added that a similar situation exists with credit spreads. Bond traders are particularly concerned about private lending transactions, which may lack a solid financial foundation.
Morgan Stanley CEO Ted Pick and Goldman Sachs' David Solomon also agreed with Gitlin's view, believing that a significant sell-off is likely in the near future, and stating that pullbacks are a normal feature of market cycles.
Another worrying sign was that Palantir Technologies raised its annual revenue forecast to $4.4 billion, and its third-quarter sales exceeded analysts' expectations. In the quarter ending in September, the company's revenue grew 63% to $1.18 billion; excluding certain items, earnings per share were 21 cents. However, despite the strong quarterly results, the company's stock fell about 3% in after-hours trading due to market concerns about its valuation, given that its stock had previously hit record highs.
Other overnight news: Brazil cracks down on illegal gold miners
With the support of Interpol, Brazilian police destroyed hundreds of dredgers used for illegal gold mining along the Madeira River. This is one of the largest coordinated operations to date against criminal networks in the Amazon basin.
Interpol said law enforcement officers dismantled 277 floating mining rafts, valued at approximately $6.8 million. Officials said that, including the lost gold, equipment, and environmental damage, the organized crime group suffered a total economic loss of approximately $193 million.
The US government shutdown may set a new record for the longest in history.
With the deadlock between Democrats and Republicans extending into the new month, this week's US government shutdown could set a new record for the longest in history. The Associated Press reports that "millions of people may lose food assistance benefits, Medicaid is about to expire, and the two parties have barely engaged in substantive negotiations on how to end the shutdown."
In an interview, President Trump stated that he "will not be coerced by Democrats"—who are demanding negotiations to extend the expiring Affordable Care Act subsidies. President Trump echoed the position of congressional Republicans, saying that negotiations would only take place after the government reopens.
Trump stated that Democrats "have lost their way" and predicted they would compromise with Republicans. "I think they have to compromise," Trump said. "If they don't vote (to reopen the government), that's their problem."
Trump's remarks suggest the government shutdown could last for some time. Federal workers, including air traffic controllers, face another pay freeze, and the continued access of the 42 million Americans receiving federal food assistance remains uncertain. Senate Democrats have voted against reopening the government 13 times, insisting that Trump and Republicans negotiate with them first.
Technical Analysis of December Gold Futures
(COMEX Gold Daily Chart Source: FX678)
From a technical perspective, the next upside target for December gold futures bulls is to push the closing price above the key resistance level of $4,100.00. The next short-term downside target for bears is to push futures prices below the key technical support level of $3,800.00.
The first resistance level is seen at this week's high of $4043.10, with further resistance at last Friday's high of $4059.90. Support is at $3950.00.
Technical Analysis of December Silver Futures
The next upside target for December silver futures bulls is to push the closing price above the key technical resistance level of $50.00. The next downside target for bears is to push the closing price below the key support level of $45.00.
The first resistance level is seen at $49.00, with further resistance at $49.50. The support level is at $46.50.
Note: Two main pricing mechanisms in the gold market
The gold market primarily uses two pricing mechanisms: the first is the spot market, which offers prices for immediate purchase and delivery; the second is the futures market, which determines the price for delivery on a future date. Due to year-end position adjustments and market liquidity factors, the most actively traded gold futures contract on the Chicago Mercantile Exchange (CME) is currently the December delivery gold futures contract.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
