LME Copper prices declined for the third consecutive week as concerns over the profitability of heavy AI investments weighed on investor sentiment, while higher oil prices and weakness in technology shares triggered a shift towards safe-haven assets. China's October manufacturing PMI slipped to 49.3, signalling contraction in factory activity and raising concerns over industrial demand.
NYMEX Natural Gas prices gained around 1.3% during the week, supported by stronger LNG flows to Gulf Coast export terminals, which helped reduce domestic gas availability. Freeport LNG flows also recovered to normal levels following a temporary disruption. However, continued warmer-than-normal weather forecasts and a larger-than-expected EIA inventory build limited gains.
WTI Crude Oil prices remained relatively steady, while Brent crude climbed above $115 per barrel, approaching its four-year high of $116.72, supported by escalating US-Iran tensions and fears of supply disruptions. Reports that Washington is considering renewed military strikes against Tehran after next week's midterm elections heightened uncertainty. Meanwhile, Iran confirmed receiving a letter from US Vice President JD Vance aimed at reviving peace negotiations, with Qatari mediators returning to Tehran to facilitate a potential agreement. However, continued tanker attacks and threats to shipping through the Strait of Hormuz, alongside escalating clashes involving Saudi Arabia and Houthi forces, kept supply risks elevated.
COMEX Silver prices plunged below $50 per ounce for the first time since November 2025, as rising energy costs and persistent inflation concerns reinforced expectations of higher US interest rates for longer. Although the Federal Reserve and ECB held rates unchanged, accelerating US inflation and stronger core price growth strengthened expectations of a potential Fed rate hike in December, with money managers cutting net-long positions by 844 contracts to 2,902, the lowest bullish positioning in over 2 years. The gold-silver ratio climbed to 78.88, highlighting silver's sharper decline. Meanwhile, broader market deleveraging and safe-haven flows into US Treasuries outweighed support from a weaker dollar and softer bond yields, despite escalating Middle East tensions.
COMEX Gold prices declined around 3% during the week amid a sharp sell-off in technology stocks, driven by concerns over rising Al-related spending, which may have triggered forced selling and margin calls across markets. Persistent inflation concerns further pressured bullion as stronger-than-expected US GDP growth, accelerating September inflation and rising oil prices. reinforced expectations of higher interest rates for longer, with markets increasingly pricing in a potential Fed rate hike in December. Although the Federal Reserve and European Central Bank held rates steady. Meanwhile, subdued physical demand in India and China added pressure, as buyers remained cautious amid falling prices. Elsewhere, Hackers stole $6.3 billion from Binance in a record crypto heist linked to North Korea, raising concerns about confidence in digital assets.
The overall month has been quite unpredictable. While many on the chart stood strong, most of them have slipped. Bank Nifty on the other hand maintained its grip for a long time but now appears slightly bearish. Let’s see what the coming month holds for the investors as Mr. Sumeet Bagadia, Executive Director of Choice takes us through the weekly predictions of the market.