2025-10-24 Sing Pao's Column《真金白銀》(English translation) Gold Pulls Back as Safe-Haven Demand Eases

Gold Pulls Back as Safe-Haven Demand Eases

The gold market remains highly volatile, with prices retreating sharply after a recent peak. During U.S. pre-market hours on the 23rd, gold held above the key $4,000 level. However, after climbing to $4,161 in the European session, it lost momentum again—marking a stark contrast from the recent all-time high of $4,381. The $4,000 level now acts as a psychological battlefield. Risk-aversion has eased somewhat due to a temporary cooling in tax policy tensions, leading to marginal outflows from gold. Still, concerns linger: the U.S. government shutdown has now entered its 22nd day, posing a prolonged threat to confidence and economic momentum. The tug-of-war between fading haven demand and USD strength is driving short-term consolidation in gold.

From a technical perspective, the recent sharp drop from record highs has confirmed a corrective structure on the 4-hour chart. Immediate resistance is seen near $4,190 at the 50-period Simple Moving Average (SMA), while support lies near $4,060 at the 100-SMA. A sustained close below $4,000 could trigger a deeper test of the $3,950–$3,920 zone. The Relative Strength Index (RSI) is hovering around 31, deep in oversold territory, suggesting bearish pressure remains intact. Unless gold recovers decisively above $4,200, the short-term outlook remains vulnerable to further consolidation or downside drift.

Silver rebounded modestly during Wednesday's Asian session to reach $49.26, finding buying interest near the two-week low of $47.53. Since last Friday’s all-time high of $54.50, silver has dropped nearly 13%. The price is currently struggling to stay above the 20-day Exponential Moving Average (EMA) around $49.05. The 14-day RSI has fallen below 60, indicating waning bullish momentum. A break below $47.53 may trigger further downside toward the October 2 low of $45.90.

In the crypto space, the aftermath of the flash crash on October 11 continues to ripple through the market. While two weeks have passed, investor sentiment remains shaken. According to Coinglass, open interest across crypto contracts fell from $233.5 billion on October 8 to $146.6 billion by October 19—a 37% decline. The Fear & Greed Index has dropped below 40 but remains above 20, indicating moderate but not extreme fear. On the bright side, much of the excess leverage has been flushed out, reducing systemic risk for a healthier long-term recovery. However, the damage inflicted may take time to heal, and market consolidation is likely in the near term.

Disclaimer:This column is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any financial products. Investing involves risk. Readers are advised to evaluate their personal circumstances carefully and seek independent professional advice before making any investment decisions.