Group 1 - The current U.S. economy is sending mixed signals, with strong consumer spending and AI investment contrasting with a weak job market [1][4] - Morgan Stanley's data indicates that consumer spending grew nearly 3% in the third quarter, reflecting economic resilience [4] - High-income and high-wealth households disproportionately contribute to total consumer spending, which has recently surged [7] Group 2 - AI-related capital expenditures are significant as they are less sensitive to short-term cyclical fluctuations, representing a long-term investment theme [9] - Evidence suggests a notable slowdown in job creation this year, with rising unemployment and stagnant wage growth indicating a serious labor demand slowdown [10] - Increased consumer spending is primarily focused on automobiles, driven by electric vehicle tax credits and preemptive purchases due to tariffs, which may lead to a spending pullback in the coming months [10] Group 3 - The Federal Reserve faces divergent policy paths depending on economic conditions, with strong economic resilience requiring restrictive policies and weak economic performance necessitating more rate cuts [12] - The experience from 2018-2019 indicates that tariffs have a significant negative impact on U.S. domestic manufacturing, with effects lasting over a year and a lag of about two quarters before the impact is felt [11]

Core Insights - The crypto market experienced a significant liquidation wave, with over $630 million in positions wiped out on October 9, primarily affecting long bets [1][2] - The total crypto market cap saw a decline of nearly $200 billion, reverting valuations to mid-September levels after reaching a record of $4.27 trillion [2] - The selloff is attributed to macroeconomic factors, including Federal Reserve uncertainty, fading liquidity, and profit-taking [3] Market Performance - Bitcoin remains above $120,000, showing an 8% increase for the month, while Ethereum is just under $4,500 as traders take profits [2] - Mid-cap projects like Aptos (APT) and Sui (SUI) experienced declines of 3-6% as leveraged traders exited positions [4] - Despite the pullback, the total value locked (TVL) in DeFi protocols remains around $166 billion, indicating sustained long-term confidence [4] Market Structure - Analysts suggest that the market structure remains broadly bullish despite the recent correction, viewing it as a leverage flush rather than the beginning of a new downtrend [5] - A specific token is showing a strong technical setup, forming a "cup and handle" pattern on its monthly chart, indicating potential for future gains [5]

Core Viewpoint - The U.S. Treasury yields remain stable as investors focus on the ongoing government shutdown, which has entered its ninth day, while awaiting a breakthrough in the situation [1] Group 1: Treasury Yields and Market Reactions - The yields on the benchmark 10-year, 2-year, and 30-year U.S. Treasury bonds have all increased by less than 1 basis point [1] - Despite the government shutdown, the auction of 10-year Treasury bonds on Wednesday went relatively smoothly, boosting market confidence in U.S. Treasuries [1] Group 2: Federal Reserve and Monetary Policy - Investors are looking towards the minutes from the Federal Reserve's recent meeting for clues about future policy directions, with a consensus among officials on the rate cut in September but differing views on future cuts [1] - The current money market indicates a 95% probability of another rate cut by the Federal Reserve in October [1] Group 3: Government Shutdown Impacts - The ongoing government shutdown is causing a continuous expansion of the U.S. fiscal deficit, leading traders to closely monitor investor demand for U.S. Treasuries [1] - The shutdown has resulted in a halt to the release of official data, adding uncertainty to the market and increasing risks [1] - Investors are weighing their options carefully, considering the implications of the government shutdown on future policies and market trends [1]

Core Viewpoint - The seminar focused on the fluctuations of the Renminbi (RMB) exchange rate and the expectations of the Federal Reserve's policies, highlighting the interplay between U.S.-China economic relations and currency movements [1][3]. Group 1: RMB Exchange Rate Trends - Since April 2022, the RMB has been under pressure, depreciating from around 6.3 to below 7.3, with a stabilization around 7.3 in the second half of 2023 [4][5]. - The depreciation of the RMB post-2022 is attributed to the divergence in economic cycles and monetary policies between China and the U.S., leading to a negative interest rate differential [5][6]. - The RMB's exchange rate is not significantly deviating from its equilibrium level, with both upward and downward factors present, suggesting a need for a risk-neutral market approach [3][4]. Group 2: Factors Influencing RMB's Strength - The RMB's recent strength against the dollar is driven by the weakening of the "American exceptionalism" narrative, improvements in the Chinese economy, and a thawing in U.S.-China trade relations [3][9]. - Historical context shows that during Trump's first term, tariffs led to a depreciation of the RMB, but the current environment suggests a potential for appreciation due to various factors, including market sentiment and economic recovery [10][12]. - The RMB's appreciation is also supported by the Chinese government's proactive measures to mitigate external shocks and improve economic conditions [19][20]. Group 3: Federal Reserve Policy Outlook - The Federal Reserve is expected to continue with two more rate cuts in 2025, with the nature of these cuts being crucial for the dollar's performance [22][24]. - The Fed's independence is under threat due to political pressures, particularly from the Trump administration, which could impact its policy decisions and market perceptions [25][27]. - The Fed's dual mandate of managing employment and inflation is becoming increasingly complex, with rising inflation and a weakening labor market posing challenges [26][28]. Group 4: Implications for the Dollar and Global Markets - The weakening of the dollar is influenced by Trump's policies, which disrupt traditional economic cycles and could lead to a rebalancing of global assets favoring non-U.S. assets [32][33]. - The current environment suggests that the RMB may benefit from a weaker dollar, especially if U.S.-China trade relations stabilize and economic conditions improve in China [38][39].

Group 1 - The core viewpoint is that gold prices are experiencing a significant increase, with recent prices reaching 1157 yuan per gram and 4000 dollars per ounce, marking over a 50% rise this year [1][3] - Major institutions, such as Goldman Sachs, have raised their gold price forecast for the end of 2026 to 4900 dollars, indicating strong demand from central banks, particularly in emerging markets, which are expected to buy an average of 70-80 tons of gold annually [3] - The continuous purchasing by central banks provides a solid foundation for gold prices, influencing retail prices as the cost of raw materials rises in line with international gold prices [3] Group 2 - The current surge in gold prices is driven by both central bank purchases and institutional forecasts, suggesting a cautious market sentiment regarding economic stability and currency value [3][4] - Future gold price movements will depend on factors such as Federal Reserve policies and global economic conditions, indicating potential volatility ahead [4]

Group 1: Oil Market - Oil prices experienced a short-term spike due to geopolitical tensions, particularly Trump's ultimatum to Hamas, raising concerns about Middle Eastern oil supply disruptions [3] - Despite the spike, oil prices actually fell by 7.4% over the week, as market participants remain cautious about OPEC+'s upcoming discussions on production levels and the impact of U.S. government activities on Iraqi oil exports [3] - The overall sentiment in the oil market is mixed, with short-term volatility driven by news but long-term trends dependent on OPEC+ decisions and supply-demand dynamics [3] Group 2: Copper Market - Copper prices surged by 5.2% in a week, marking the largest weekly increase in a year, closing at $10,715 per ton, just under $400 from last year's historical high [4] - The rise in copper prices is attributed to supply chain issues and a weaker dollar, which enhances the attractiveness of dollar-denominated commodities [4] - Other base metals also saw significant increases, with zinc rising by 5% and tin by 8.6%, driven by supply concerns from Indonesia [4] Group 3: Gold Market - Gold prices have risen for seven consecutive weeks, currently standing above $3,885 per ounce, just $12 shy of the previous record high [5] - The increase in gold prices is primarily driven by uncertainty surrounding U.S. government operations and delayed economic data, leading investors to seek gold as a safe-haven asset [5] - There are indications of overbought conditions in the gold market, suggesting potential for a price correction despite the current upward trend [5] Group 4: Investment Strategy - Investors are advised to focus on the underlying "mainline logic" of commodity markets rather than short-term fluctuations, with oil influenced by supply-demand and geopolitical balance, copper by industrial demand and supply gaps, and gold by Federal Reserve policies and global uncertainties [5]

Core Viewpoint - The gold market is experiencing a bullish trend, driven by geopolitical tensions and economic data indicating a cooling labor market, which enhances the appeal of gold as a safe-haven asset [1][2] Group 1: Market Dynamics - Gold prices showed a fluctuating upward trend, reaching a high of $3891 but failing to break the $3900 resistance level, closing at $3885 [1] - Geopolitical events, such as Middle East peace negotiations and US-Russia military confrontations, are contributing to heightened risk aversion among investors [1] - The US government shutdown has led to significant disruptions, with hundreds of thousands of federal employees affected, raising concerns about potential downward revisions of US economic growth [1] Group 2: Technical Analysis - Current gold prices are within an upward channel, with key support at $3760; a failure to break this level during a pullback could present a buying opportunity [2] - The MACD indicator shows increasing bullish momentum, and the 5-day and 10-day moving averages have formed a golden cross, indicating a strong bullish trend [2] - The trading strategy for the upcoming week involves monitoring geopolitical developments and US government negotiations, with potential short positions if resistance near $3885-$3890 is tested without a breakout [2]

Core Viewpoint - The recent decline in gold stocks follows a significant drop in gold prices, influenced by cautious signals from Federal Reserve officials regarding interest rate policies [1] Group 1: Gold Stock Performance - Gold stocks experienced a widespread decline, with notable drops including Jihai Resources down 4.52% to 1.9 HKD, China Silver Group down 4.35% to 0.66 HKD, Chifeng Jilong Gold down 3.32% to 31.44 HKD, and Lingbao Gold down 2.4% to 19.93 HKD [1][1][1] Group 2: Gold Price Fluctuations - On October 2, gold prices saw a sharp decline, falling below 3820 USD/ounce after reaching a peak of 3896 USD/ounce, marking a drop of approximately 80 USD within the day [1][1][1] - Current spot gold prices are fluctuating around 3850 USD/ounce [1] Group 3: Federal Reserve Signals - Federal Reserve officials, including Logan, indicated a cautious approach towards interest rate policies, suggesting a slight increase in unemployment rates but not to a concerning level [1][1] - The officials emphasized the need for caution in avoiding premature rate cuts, stating that decisions will be based on available information rather than solely on official unemployment data [1][1]

Core Viewpoint - The Vice Chairman of the Federal Reserve, Jefferson, anticipates that the U.S. economy will continue to grow at around 1.5% for the remainder of the year, indicating potential pressure on the labor market without Federal Reserve support [1] Economic Growth - Jefferson expects the U.S. economy to grow at approximately 1.5% for the rest of the year [1] - He supports a 25 basis point interest rate cut in the September meeting to balance the risks of inflation above target and increasing threats to the labor market [1] Labor Market - The labor market is showing signs of softening, suggesting it may face pressure without adequate support [1] Inflation Outlook - Jefferson predicts that inflation will begin to decline towards the Federal Reserve's 2% target level after this year [1] Policy Uncertainty - The impacts of the Trump administration's trade, immigration, and other policies are still evolving, leading to particularly high uncertainty in baseline forecasts [1] - Although tariffs have a lower impact on inflation and other economic aspects than some economists expected, Jefferson believes these effects will become more apparent in the coming months [1]

Report Summary 1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints - Holiday - eve saw a divergence in the Shanghai precious metals market, with the Shanghai gold futures main - contract price hitting a new record high and the upward momentum of silver slowing [2]. - Geopolitical factors: If the peace agreement between the US and Israel makes substantial progress, the safe - haven premium of precious metals may decline, and a short - term correction is possible. The potential US government shutdown due to the lack of short - term funding has heightened market risk aversion [2]. - Fed officials emphasized the risk of inflation rebound, with a cautious approach to interest rate cuts and a data - dependent path. The recent strong US economic data has slightly reduced the expectation of interest rate cuts, which may hinder the upward movement of gold prices [2]. - The US 8 - month core PCE data met market expectations. Although the interest rate cut expectation declined marginally due to Powell's hawkish remarks, the PCE data's mildness secured a 25bps interest rate cut in the next FOMC meeting [2]. - The gold and silver ETFs in the external market had significant net inflows, and market bullish sentiment remained high. The market focus is on US economic data and Fed policies. Weak non - farm payrolls this week would increase the probability of further interest rate cuts and boost precious metals, while high inflation and economic resilience could lead to a rebound in the US dollar and bond yields and put downward pressure on precious metals [2]. - In the long - term, the US fiscal deficit, debt issues, tariff uncertainties, and geopolitical risks support gold prices. Silver generally follows gold, and the structural demand in the photovoltaic and new - energy sectors may bring additional elasticity when the global manufacturing industry stabilizes. It is recommended to conduct range - bound trading and beware of short - term correction risks [2]. 3. Summary by Relevant Catalogs 3.1 Futures Market - **Prices**: The closing price of the Shanghai gold futures main contract was 874.4 yuan/gram, up 7.88 yuan; the closing price of the Shanghai silver futures main contract was 10918 yuan/kg, down 21 yuan [2]. - **Positions**: The main - contract positions of Shanghai gold were 256,876 lots, down 6,344 lots; those of Shanghai silver were 476,244 lots, down 32,723 lots. The net positions of the top 20 traders in the Shanghai gold main contract were 166,413 lots, down 1,306 lots; those of Shanghai silver were 105,881 lots, up 6,986 lots [2]. - **Warehouse Receipts**: The gold warehouse receipts were 70,728 kg, up 2,100 kg; the silver warehouse receipts were 1,192,282 kg, up 2,634 kg [2]. 3.2 Spot Market - **Prices**: The Shanghai Non - ferrous Metals Network's gold spot price was 872.95 yuan/gram, up 15.92 yuan; the silver spot price was 10,913 yuan/kg, up 143 yuan [2]. - **Basis**: The basis of the Shanghai gold futures main contract was - 1.45 yuan/gram, up 8.04 yuan; the basis of the Shanghai silver futures main contract was - 5 yuan/kg, up 164 yuan [2]. 3.3 Supply and Demand - **ETF Holdings**: Gold ETF holdings were 1,011.73 tons, up 6.01 tons; silver ETF holdings were 15,521.35 tons, up 159.51 tons [2]. - **CFTC Non - commercial Net Positions**: The weekly non - commercial net positions of gold in CFTC were 266,749 contracts, up 339 contracts; those of silver were 52,276 contracts, up 738 contracts [2]. - **Supply and Demand Quantities**: The quarterly total supply of gold was 1,313.01 tons, up 54.84 tons; the annual total supply of silver was 987.8 million troy ounces, down 21.4 million troy ounces. The quarterly total demand for gold was 1,313.01 tons, up 54.83 tons; the annual global total demand for silver was 1,195 million ounces, down 47.4 million ounces [2]. 3.4 Option Market - **Historical Volatility**: The 20 - day historical volatility of gold was 13.38%, down 0.71 percentage points; the 40 - day historical volatility was 11.45%, down 0.1 percentage points [2]. - **Implied Volatility**: The implied volatility of at - the - money call options for gold was 21.12%, up 1.53 percentage points; the implied volatility of at - the - money put options was 21.11%, up 1.53 percentage points [2]. 3.5 Industry News - Trump and Netanyahu held a bilateral meeting, and a peace plan was proposed. If implemented, the war would end immediately, and Israeli troops would withdraw to the agreed - upon border [2]. - Trump threatened to impose a 100% tariff on overseas - made movies and large tariffs on countries where furniture is not made in the US [2]. - The value of the US Treasury's 261.5 million ounces of gold reserves exceeded $1 trillion. A market - value revaluation would release about $990 billion in funds for the US Treasury [2]. - Fed officials had different views on interest rate cuts. Hamack opposed rate cuts due to inflation concerns, Musalem was open to future rate cuts but cautious, and Williams said monetary policy remained tight [2].