Gold Retreats After Record Run
Gold prices pulled back Thursday as the dollar strengthened and traders locked in profits after a five-day rally. Spot gold dipped to $3,840 an ounce, slipping from record levels that had marked its strongest run since the late 1970s.
The metal is still up 46% year-to-date, supported by heavy central bank buying, inflows into gold-backed ETFs, and expectations of continued Fed rate cuts. With the government shutdown delaying official labor and inflation data, investors are leaning on private reports that suggest a softening jobs market — a backdrop that keeps gold’s long-term case intact.
But in the short term, the rally has left bullion overbought, leaving it vulnerable to profit-taking when the dollar firms.
Stocks Lose Steam After AI Buzz
The Nasdaq Composite rose 0.2%, trimming early gains, while the S&P 500 slipped slightly and the Dow fell 0.1%.
A surge in AI enthusiasm initially boosted markets after OpenAI’s valuation hit half a trillion dollars in a secondary share sale, briefly lifting Nvidia and other chipmakers. But optimism faded as focus returned to the ongoing shutdown in Washington and the likelihood of delayed economic data.
Investors had hoped for Friday’s jobs report to confirm whether Fed rate cuts are on track. With the Bureau of Labor Statistics offline, markets are relying on private data pointing to weakening hiring momentum.
Oil Marks Fourth Straight Decline
Oil prices extended their slide, with WTI crude falling near $60 a barrel and Brent crude slipping toward $64. The decline marks a fourth consecutive day of losses as concerns about oversupply grow.
Reports suggest OPEC+ may consider raising production by as much as 500,000 barrels per day in November, as Saudi Arabia aims to defend its market share. That prospect pressured prices further, undoing recent bullish sentiment tied to global demand.
Mortgage Rates Edge Higher
U.S. mortgage rates rose for the second week in a row. The average 30-year fixed rate climbed to 6.34%, while the 15-year rate edged up to 5.55%.
Despite recent Fed rate cuts, mortgage costs remain volatile, tracking swings in the 10-year Treasury yield. Refinancing activity remains subdued as borrowers wait for clearer signals on the Fed’s path ahead.
WSA Take
Thursday’s session was a reminder that investors are navigating a crosscurrent of forces: gold’s long-term bullish setup versus short-term profit-taking, AI-driven optimism colliding with political gridlock, and oil prices sliding on supply fears.
The missing piece is reliable government data. Until the shutdown ends, markets will trade on sentiment, private surveys, and speculation about Fed moves. That leaves volatility elevated across asset classes.
If you missed our recent coverage on Tesla’s record deliveries and Rivian’s sales outlook, it shows how the EV sector is diverging as policy shifts reshape demand. For more insights, visit the Wall Street Access homepage.
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