1. Gold and Silver Carnage: Panic Selling Hits Precious Metals
What happened in gold and silver yesterday was pure carnage. I watched the charts all day — it was relentless selling. Gold dropped over 5%, while silver plunged more than 7% by the end of the day.
Was that expected? To some degree, yes. I’ve been saying that both metals were becoming crowded trades — too many people were piling in. When that happens, even small triggers can spark panic selling. This time, there wasn’t any major news other than margin requirements increasing in Shanghai.
What’s next? Moves like these often have some follow-through, meaning there could be more downside ahead. For gold and silver miners, the pain could be severe.
Is this normal? Yes — this kind of washout has happened before.
2. U.S. Yields Keep Falling — What’s the Bond Market Telling Us?
It’s important to note that U.S. Treasury yields continue to trend lower, even with no major data releases out of the U.S.
As I write this, the 10-year yield (US10Y) sits at 3.95%, down from around 4.80% in early 2025. The 30-year yield (US30Y) is also slipping.
Two possible interpretations:
- Investors may be rotating out of stocks and into safer assets, preferring a lower but certain return.
- The bond market could be signaling that inflation is cooling, and rate cuts might be on the horizon — suggesting the Fed’s messaging is “working.”
Remember: the bond market moves first, and often sets the tone for everything else. You need to understand credit cycles.
3. U.S. Shutdown Drags On — Eyes on FOMC Speakers & Canadian Retail Data
The U.S. government shutdown continues, meaning limited data to work with for now.
However, several FOMC members are set to speak throughout the week — their messaging could provide hints about monetary policy direction… but rate cut is coming likely next week.
In Canada, retail sales data comes out tomorrow. This one’s worth watching closely since the Canadian economy remains in a rough patch.
4. Markets Still Stuck in a Range — Waiting for a Breakout
If you’ve been watching the major U.S. indices, you’ll notice that the October 10th trading range hasn’t been broken yet. Prices keep moving within that range, and yesterday, indices approached the upper end of it.
If we see a breakout, expect more buying momentum. If not, brace for choppy moves back toward the lower end.
Also, remember — earnings season continues. Big names will report soon, and any surprises (good or bad) could move the market.
Looking ahead, the end of November typically marks a seasonally strong period for stocks — unless we enter a 2018-style selloff.
5. Bitcoin on the Edge, Oil Struggles, and Banks Under Pressure
Bitcoin continues to hover around its 200-day moving average — a critical level. A move below it could trigger more downside pressure.
Meanwhile, regional banks (looking at the KRE ETF) are down roughly 8% from early September highs — not a good look.
Oil prices are bouncing slightly, but the trend remains weak. Even if crude rises to $62, it would still be technically fragile. There’s plenty of supply, and no strong demand for higher prices right now.
Lastly, the U.S. dollar remains stable, showing resilience despite all the market volatility.