Market Analysis: On October 31, gold staged a dramatic reversal on Thursday (October 30), rebounding from an early dip to 3,915 before climbing steadily to reclaim the key 4,000 level. It peaked at 4,026.88 USD/oz and closed at 4,024.18 USD/oz, marking a 2.4% gain—the largest single-day surge since retreating from its record high on October 20. This sharp rally was fueled by a dual catalyst: the Fed's anticipated rate cut and lingering doubts over the U.S.-China trade truce, reigniting demand for non-yielding gold amid low rates and heightened uncertainty. Market participants noted, "The vague details of the trade deal instantly sparked safe-haven flows, turbocharging gold." Early Friday (October 31) in Asia, spot gold extended its overnight gains, briefly hitting 4,046.13 USD/oz before consolidating. At this juncture, gold isn’t just a hedge—it’s a strategic asset under dual tailwinds of low rates and uncertainty, signaling a potential new uptrend.

Gold Technical Analysis: **Daily Chart**: After a steep drop from record highs, prices have struggled to hold above the 5-day moving average (MA). However, the rapid 500 USD pullback suggests oversold conditions, setting the stage for a corrective rebound, likely forming a secondary peak. A sustained break above the 5-day MA at 3,990 is critical for further upside. Post-rebound, gold may enter a high-level symmetrical triangle consolidation, with volatility tapering before another push toward record highs.

**4-Hour Chart**: Focus on the mid-Bollinger Band at 3,987. The MACD shows a bullish crossover below zero with rising red bars, confirming a breakout above the mid-band. This signals short-term upward momentum, potentially triggering a sustained rally.

**Hourly Chart**: Thursday’s price action was choppy—early weakness reversed into a small V-shaped recovery past the opening drop. After breaching 3,966, sideways trading in Europe preceded a fakeout rally and swift retracement, reflecting a volatile range. With the mid-band resistance now tested post-breakout, traders should monitor rebound strength. Resistance lies at 4,030–4,046; a clear breakout could extend gains toward 4,100.

Silver Technical Analysis: Silver consolidated in Asia-Europe sessions on Thursday before breaking higher and retesting the hourly mid-band for support. Its trend appears cleaner than gold’s, with better follow-through. Trading strategy: As long as 47.8 holds, targets include 48.4, 48.8, 49.3, and 50.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Investors should exercise caution and conduct their own research.