Gold & Silver Morning Update 11/3/2025
A challenging start to the week for the precious metals at the Globex open last night following a weekend Bloomberg report that said China had scrapped a tax break for gold retailers sourcing the metal from non-exchange sources, that will “likely increase the cost of buying gold for Chinese consumers”. A local gold expert on X pushed back though, saying this move merely shifts wholesale demand to the Shanghai Gold Exchange (that has VAT exemption), and so the more public exchange price of gold in China could actually go up because of this. Sure enough it did at the China open last night, with some help from USDCNH sales following another supportive CNY fix.
European sellers were back earlier this morning though, hitting all the precious metals when the broader USD began its breakout above Friday’s highs. Therre was no clear catalyst for this, but G7 bond yields did gap-up to the start the week. Algo selling at 9amET and the S&P cash open then knocked the metals lower again just a while ago, but thankfully for the bulls, both metals continue to defend their 55hr moving averages as new support, which were regained during that burst of Chinese buying last night. They’ll now want to see weaker-than-expected October ISM Manufacturing survey data on deck at 10amET.
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