Each day Information Nuggets | As we speak’s prime tales for gold and silver traders November 4th, 2025
Is the AI Growth Constructed on Hype or Laborious Numbers?
The AI trade crossed a shocking milestone final week: Nvidia hit a $5 trillion valuation, making it the primary firm in historical past to achieve that mark. That single chipmaker now accounts for roughly 8% of your entire S&P 500. However beneath the staggering numbers, cracks are displaying. OpenAI’s ChatGPT — essentially the most profitable AI product up to now — loses cash virtually each time you employ it, racking up a $13.5 billion loss within the first half of 2025 regardless of $4.3 billion in income.
Deutsche Financial institution warns the growth is “unsustainable,” whereas Bain tasks the trade wants $2 trillion in annual income by 2030 simply to take care of present spending ranges. Maybe most telling: an MIT examine discovered 95% of companies deploying AI have gotten zero worth from it. The trade is sustained not by earnings, however by round financing offers and relentless storytelling a couple of transformative future. If historical past is any information, when tech bubbles deflate, traders sometimes rotate into tangible belongings—and that’s when gold and silver shine.
The market didn’t wait lengthy to react.
Tech Shares Sink as Valuation Fears Hit Fever Pitch
Wall Road’s AI darlings took a beating Tuesday as considerations about stretched valuations triggered a broad sell-off. S&P 500 futures dropped 1.1% whereas the Nasdaq 100 slid 1.5%, with Palantir plunging 8% regardless of beating earnings expectations and elevating steerage. The software program firm trades at a staggering 700 occasions earnings, elevating alarms amongst traders about sustainability.
Goldman Sachs CEO David Solomon warned in a single day {that a} 10-20% correction is ‘seemingly’ inside the subsequent yr, echoing related cautions from Morgan Stanley. Including to uncertainty: a authorities shutdown — now tied for the longest on file — has left the Fed navigating blind with out key financial knowledge.
The sell-off isn’t confined to equities. Threat urge for food is evaporating throughout asset lessons.
Bitcoin Slides to Two-Week Low Amid Threat-Off Temper
Bitcoin continued its retreat Tuesday, falling as a lot as 3.1% to $103,578—approaching its lowest degree since mid-October. Ether dropped 3.4% beneath $3,500, deepening losses from current highs. The slide displays broader weak spot in threat belongings as traders reassess frothy valuations and an more and more unpredictable Fed.
Regardless of the pullback, Bitcoin stays effectively above $100,000 and up considerably for the yr, although it’s shed roughly 18% from its October peak close to $126,000. The selloff comes as conventional secure havens like gold face their very own headwinds, suggesting that is much less about rotation into defensive belongings and extra about wholesale de-risking.
Even conventional secure havens aren’t catching a bid on this setting.
Gold Slips Beneath $4,000 as Fed Fee Reduce Hopes Fade
Gold slipped beneath the $4,000 mark Tuesday, pressured by a strengthening greenback and fading expectations for one more Fed charge minimize in December. After Fed Chair Jerome Powell steered final week that one other discount this yr is “removed from a foregone conclusion,” merchants slashed their odds for a December minimize from over 90% to 65%.
Gold is up 53% year-to-date, however nonetheless hovers 8% beneath its October file excessive. Analysts say the yellow metallic’s near-term route hinges on upcoming U.S. financial knowledge and Fed commentary. Regardless of the pullback, gold stays firmly above key technical assist close to $3,970, with strategists watching carefully for any indicators of financial weak spot that would revive rate-cut hopes and ship gold rallying once more.
The paradox? Gold’s promoting off on Fed hawkishness, but when the economic system truly weakens or inflation persists, the metallic might discover its footing quick. For now, it’s caught between competing narratives.
Treasury Admits Inflation “Above Goal” Regardless of Trump’s Claims
The Treasury Division quietly admitted Monday what markets already suspect: inflation ‘remained above the goal of two % within the third quarter’ — whilst President Trump insists ‘we have now no inflation.’”
The disconnect is placing. Whereas Trump instructed CBS’s ‘60 Minutes‘ he’s ‘already taken care of’ inflation, official knowledge tells a special story: 3% yearly in September, with will increase each month since April.” Meals costs for each groceries and eating places “elevated reasonably,” Treasury reported, with beef hitting file highs.
The administration’s aggressive tariff technique — now the most important tax enhance as a share of GDP since 1993 — provides an estimated $1,300 annual burden per U.S. family. For treasured metals traders, this issues: persistent inflation above the Fed’s goal, mixed with tariff-driven value pressures, creates precisely the setting the place gold and silver traditionally thrive as inflation hedges. The query isn’t whether or not inflation exists — it’s whether or not the Fed will act accordingly.
