Gold & Silver Morning Update 10/7/2025 | The Bregar Minute
Another overnight session where the precious metals indeed took their cue from global stock and palladium markets. A late selloff for the Nikkei in Asia and early weakness for the DAX & palladium in Europe sparked the gold & silver decline from 1-4amET. However, we then saw German stocks & palladium bounce strongly into the NY open, and a punch higher for the S&P futures to new all-time-highs (and palladium to new session highs) is now leading gold to do the same thing. Enjoy this while it lasts bulls, but I don’t like this ever-increasing positive correlation with stock market risk-taking sentiment one bit. Don’t believe anyone telling you that the precious metals are benefitting from safe-haven flows, Fed rate cut expectations, or the dollar de-basement trade of late.
The key level to watch for gold this morning is the 4000 level in the December futures (last night’s high, the level we broke above last hour, and an extremely call-heavy positioned strike for November & December option expiry). Algos sold gold below this level with stock selling at the S&P cash open, but stocks are trying to rally again, which has prevented much downside momentum from developing. The COMEX opening range, 3990.90-3993.70 is another important zone as trade below there could prompt some more concerted selling. Silver’s been all over the place for the last 12hrs, and the fact that it is now underperforming gold in early NY trade (despite new session highs for copper & palladium) is a bit surprising. It all started with concerted selling out of silver’s COMEX opening range.
Five Fed-speakers are on the docket today: Bostic at 10amET, Bowman at 10:05amET, Miran at 10:30amET, Kashkari at 11:30amET, and Miran at 4:05pmET.
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