On October 17, U.S. stock markets opened with mixed results. As of 22:50 Beijing time, the three major indices were slightly up.
After a collective drop caused by credit concerns in the previous trading day, U.S. regional bank stocks rebounded during the session. Notably, Caver Savings rose over 5%, Pacific Mercantile Bank and Alliance West Bank climbed more than 4%, Zion Bank increased over 3%, and Western Community Bank was up over 2%.
Cryptocurrency-related stocks opened lower in U.S. markets but later saw minor recoveries, with Bitfarms and Canaan Creative declining over 8%. In the crypto market, there was a significant downturn, with Bitcoin dropping over 5% in 24 hours, falling below $105,000, while Ethereum saw a more than 6% decline, priced at $3,724. In the past 24 hours, over 290,000 traders faced liquidations, totaling nearly $1.2 billion.
The Nasdaq Golden Dragon China Index fell 0.62%, with popular Chinese concept stocks mostly experiencing declines. Kingsoft Cloud and Xunlei fell over 4%, while NIO and Zeekr dropped more than 2%.
The FTSE China A50 Index futures surged sharply, hitting nearly 1% at one point. Hang Seng Index futures and Hang Seng Tech Index futures also rose during the night session, increasing by 2.13% and 2.96%, respectively.
In the precious metals market, international gold prices fluctuated dramatically on the 17th, with spot gold reaching a new all-time high before plunging suddenly, breaking below $4,300/ounce with a drop of over 2% at one point. The decline for spot palladium widened to 7%, and spot silver also fell quickly, suffering a drop of over 4%.
Following notices from the Shanghai Gold Exchange and the Shanghai Futures Exchange urging rational investment, the Shanghai Futures Exchange announced on October 17 that starting on October 21, 2025, the price limit for gold and silver futures contracts will be adjusted to 14%, with the margin requirement for hedging positions set at 15% and that for general positions at 16%.
Previously, Bank of America released a global fund managers' survey for October, revealing that 43% of investors believe "going long on gold" has become the most crowded trade on the market, even surpassing the 39% who favor "going long on the U.S. seven giants." This indicates that institutional funds are massively and uniformly flowing into gold.
Interestingly, another detail from the survey is also noteworthy: despite it being considered the "most crowded trade," fund managers’ actual gold positions are not particularly high. 39% of investors admitted their gold holdings are close to zero, and the weighted average allocation for the entire group stands at only 2.4%. This creates a nuanced scenario of "bullish but underexposed," suggesting that the upward momentum in gold may not yet have received full capital allocation, leaving significant potential ahead.
Why is there such a massive and synchronous influx of global funds into the gold market? Firstly, the Federal Reserve's dovish stance is a core driving force, indicating monetary easing. Recently, Fed Chairman Jerome Powell sent key signals that liquidity in the money market is tightening, and the balance sheet reduction plan may end in the coming months.
Secondly, increased uncertainty in geopolitical risks and trade conditions has also heightened concerns. Last Friday, the U.S. government announced plans to ramp up tariff policies, sounding another alarm for global investors!
Moreover, the nature of a "crowded trade" can create a cyclical effect, akin to a snowball—prices rise as more investors buy, leading to further price increases. Importantly, gold's price has shown resilience, which is regaining recognition among mainstream institutions. Goldman Sachs has significantly raised its predictions, adjusting its price target for gold at the end of 2026 upwards by $600, reaching as high as $4,900 per ounce.
(Disclaimer: This article is for reference only and does not constitute investment advice. Investors should act at their own risk.)