Gold & Silver Daily Update 10/10/2025 | The Bregar Minute
A wild end to the week for the precious metals, and it all started with very poor risk sentiment in China last night. Hard to say if this was skittishness in light of yesterday’s sharp gold selloff or a negative reaction to FT’s report about China launching a customs crackdown on Nvidia’s AI chips, but everything got sold into midnight (stocks, base & precious metals), despite another very supportive CNY fixing that kept the broader USD offered. All the metals then suddenly turned around shortly after thousands of December silver futures contracts were stopped out near yesterday’s lows and we subsequently screamed higher into the NY open, taking out buy-stops above the Asian highs. Early NY trade was a very choppy affair, with gold & silver sellers out of the COMEX opening range ultimately caving in to PGM buyers when the S&Ps rallied strongly out of its opening range. The mixed and politically-skewed Michigan numbers were thankfully a non-event.
Trump’s very negative sounding Truth post on China (threatening massive new tariffs) at the London close then pulled the floor out from underneath the stock & copper markets (-2.5% & -4.3% crashes respectively), and helped gold mildly outperform with the lower US yield reaction. What’s been remarkable however is the rather measured (almost reluctant) selloffs in the silver, platinum, and palladium futures markets. We still have taken out the midnight lows for these traditionally risk-sensitive metals, despite the continued selling on Wall Street. I suspect this afternoon’s worsening of the spot-December silver backwardation to $3 played a role in that. The spot silver market (and its chart for that matter) is a choppy, illiquid and unpredictable mess right now because of how the LBMA supply/demand imbalance fears are sort of being balanced out by broader risk-off flows, and because of how it’s impossible to see what supply/demand drivers are behind the ongoing volatility in the spot-December spread.
Gold and bonds look like the safest places to hide here ahead of Trump’s scheduled end-of-day media appearances.
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