Core Viewpoint - The recent sharp decline in gold and silver prices marks a significant shift after a period of rapid increases, with gold dropping 6.7% and silver falling over 7% on October 21, 2023 [1] Market Reactions - Market participants exhibit varied responses to the price drop, with some maintaining a bullish outlook, others taking profits and exiting, and some remaining indecisive [1]

Core Insights - Gold and silver prices have reached new highs due to increased market risk aversion, driven by concerns over a potential U.S. government shutdown [1] - The political landscape is tense as bipartisan negotiations are ongoing to avoid a government shutdown, with differing priorities between Democrats and Republicans [1] - The weakening U.S. dollar and falling oil prices have provided additional upward momentum for gold and silver [2] Group 1: Market Performance - As of September 30, December gold futures rose by $47.00 to $3,855.80, while December silver futures increased by $0.434 to $47.09 [1] - The market sentiment is bullish for both gold and silver, with gold's next target being $4,000 and silver aiming for $50.00 [2] Group 2: Technical Analysis - December gold futures show strong bullish momentum, with resistance levels at $3,875 and $3,900, and support levels at $3,800 and $3,785.50 [2] - December silver futures also exhibit a strong bullish trend, with key support at $44.00 [2] Group 3: Market Outlook - The current bull market for gold and silver is maturing, indicating potential for a price correction in the short term, but still possessing upward potential [2] - Investors are advised to balance short-term risk aversion with long-term value allocation, while being mindful of possible high-level fluctuations and corrections [2]

Market Overview - The US dollar index continued its rebound, reaching a daily high of 97.81 before closing up 0.33% at 97.67, marking three consecutive days of gains [1] - Spot gold surged by $50 from its low, closing up 1.12% at $3685.47 per ounce, achieving its fifth consecutive weekly gain [1] - Spot silver closed up 2.94% at $43.03 per ounce [1] Key News Summary - The US dollar index rose on Friday, with Federal Reserve Governor Milan suggesting continued rate cuts in the coming months, and Minneapolis Fed President Kashkari advocating for two more rate cuts this year, reinforcing expectations for monetary easing [2] - The US House Republican funding bill failed to pass in the Senate, increasing the risk of government shutdown and exacerbating market volatility due to partisan divisions [2] - The EU approved the 19th round of sanctions against Russia, while geopolitical tensions in the Middle East continued, with Trump planning discussions with Arab leaders regarding a ceasefire in Gaza and Israeli officials seeking to expand sovereignty in the West Bank [2] - Citigroup raised its three-month gold price target to $3800 per ounce, reflecting a long-term optimistic outlook for gold prices [2] Trading Strategy - Expectations of monetary policy easing, combined with political and geopolitical uncertainties, are providing upward momentum for gold and silver prices [3] - Technically, New York gold is supported around $3550 and may test the $3800 level, while silver, benefiting from both financial and industrial demand, could see upward movement towards $45 after breaking through $43 [3] - Overall, any pullbacks present buying opportunities, as gold and silver remain in a long-term bullish market trend [3]