HSBC-Precious Metals Daily Gold surges on China buying；may dip on risk sentiment-20251110

<p style="text-indent:28px"><span style="font-size: 14px;">Market focus, emerging trends</span></p><p style="text-indent:28px"><span style="font-size: 14px;">Gold prices surged in Asian and London trading. The genesis of the rally was in</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">China, as prices jumped as soon as that market opened. Sunday news reports of a</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">possible end to the US government shutdown had no impact on China-based bulls.The China Onshore/Offshore spread moved up, reaching a premium of USD8/oz.Silver also jumped but ran into resistance at USD50/oz. NY-based Comex vaults</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">registered further outflows of 1.35moz to London, which is raising liquidity in the spot</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">markets but did not slow the rally. The PGMs rallied also but at a less robust pace.</span></p><p style="text-indent:28px"><span style="font-size: 14px;">The gold rally was reinforced once the US opened. Gold continued to climb, ignoring</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">the bearish implications of a possible end to the US government shutdown. The</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">market continued to look at weak US data from last week and a drop in US consumer</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">sentiment. This reinforced expectations of a Fed rate cut at the next FOMC. The “risk</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">on” mood may have weighed on the USD, which helped to buoy gold. Over the</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">weekend, Treasury Secretary Scott Bessent warned the economic impact of the</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">shutdown was worsening, which may also have supported gold. Bullion remained</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">well-bid, shrugging off potentially bearish factors such as further progress towards</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">ending the shutdown and slight increases in yields. Silver soared with gold. The</span><span style="font-size: 14px;">&nbsp;&nbsp;</span><span style="font-size: 14px;">vigorous move higher did not seem to have any other reasons than a likely Fed rate</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">cut and the power of the gold rally. The PGMs also surged but at a lag to both gold</span><span style="font-size: 14px;">&nbsp;</span><span style="font-size: 14px;">and silver and without notable physical buying.</span></p><p><br/></p>