The Federal Reserve's interest rate cut boosts gold and silver, driving them to new historical highs!
Observing the weekly candlestick pattern, the US dollar has three consecutive declines, corresponding to a strong upward trend in gold, silver, and precious metals. The precious metal index and silver price have set new historical highs, while gold's weekly closing price has also reached a new historical high. Platinum prices have hit a 12-year high, and palladium's weekly closing price has reached a two-year high. Comparing the US dollar index's candlestick pattern, all precious metals are performing stronger than the operational guidance indicated by the US dollar index.
Last week, precious metals surged significantly, while base metals, crude oil, and US stocks generally slowed down, highlighting an increase in market risk aversion and a decrease in risk appetite. However, observing the internal operating conditions of various markets, there are slight divergences in market risk appetite.
In the precious metal market, gold and palladium have relatively smaller increases, while silver and platinum are stronger. This does not fully indicate a comprehensive strengthening of risk aversion, but rather seems to reflect a supplementary rise of other precious metals compared to the bull market cycle of gold.
Commodity metals, crude oil, and US stocks in risk markets are similar; although the overall market risk appetite is declining, it does not mean a universal downturn: among the six major base metals in London, two rose and four fell; the Dow Jones Industrial Average rose, while the Nasdaq fell, indicating that the market should pay attention to systemic risks represented by technology stocks in the US. However, financial stocks performed relatively stable, suggesting that there is no need to worry too much about a financial crisis in the US economy.