On October 6, COMEX gold plummeted during the session, closing at $2668.0 per ounce, a decrease of 2.97%. Domestic SHFE gold opened low and moved lower in the night session, closing at 614.70 yuan/gram, down 1.96%.

In this week's US election, Trump swept the swing states to secure victory. After Trump's election victory, the "Trump trade" experienced explosive growth, supporting the three major US stock indices to hit historic highs. Tesla, Trump Media Technology (DJT), prison stocks, energy stocks, crypto concept stocks, and bank stocks all surged. Solar stocks suffered losses across the board, Chinese concept stocks generally retreated but narrowed the decline towards the closing. Market concerns about Trump implementing tariff plans weighed on European stocks. Simultaneously, worries about inflation from Trump's policies lifted the USD index by over 1.6%, surpassing 105 and hitting a near four-month high, suppressing general commodity prices. Gold, silver, copper, and oil prices fell. Bitcoin futures rose above $77,000, reaching a historical high. Short-term expectations suggest that under the influence of a strong USD, gold prices may maintain a retracement trend.

However, tonight will witness the Federal Reserve's interest rate decision. Based on Trump's expansionary policy rhetoric, if the independence of the Federal Reserve is compromised, this decision may come as a surprise. If the rate cut exceeds the expected 25 basis points, gold prices may stabilize and rebound. Nevertheless, if Trump's tariff policy triggers global inflation concerns, leading to a downward adjustment in expectations of a rate cut by the Federal Reserve, the retracement path of gold prices this week may continue into next week.

(Source: WIND, Everbright Futures Research Institute)

Written by: Shi Yueming

Professional Qualification Certificate Number: F03097365

Investment Advisory Certificate Number: Z0017563

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