Asian Metals Market Update for 27th October 2025

October 27, 2025

The correction in gold and silver was just a “Post Diwali Syndrome” and nothing else. This happens every year. It does not last long and is generally used by medium-term investors and long-term investors to increase investment.

Gold and silver prices have an uncertainty element due to the trade tariff war. The USA needs to sign a trade tariff deal with India and China to induce a short-term bearish trend in gold and silver. Till it is done, there will be investors (not traders) in a significant crash.

Hedge Fund Investment

Global hedge fund capital rose to a record of almost $5 trillion in the third quarter, and the number of hedge funds is at a decade peak, reflecting an influx of new money into the sector, a report by Hedge Fund Research (HFR) showed.
Global hedge funds numbered 8,464 as of the end of the third quarter, said research firm HFR, which tracks hedge funds, their returns, and the size of the industry.
The growth coincides with almost $34 billion of new investor money allocated to hedge funds in the third quarter, the highest quarterly net asset inflow since the third quarter of 2007, said HFR's report.
Total global hedge fund industry capital rose for an eighth consecutive quarter in the third quarter to a record $4.98 trillion, HFR said.

I see global hedge funds increasing investment in precious metals and non-ferrous metals in the next five years. October's super high intraday volatility will be due to an unthinkable amount of money in spreads of gold and silver, and copper. (gold/silver ratio, spot silver-comex silver future price gap, physical price in various countries versus comex future, etc).

I expect increasing hedge fund short-term money in precious metals and non-ferrous metals till the arbitrage trading gives over five percent return every month.

September-October rise in silver price has ensured that every person in the world will now start investing in silver. I have been regularly buying physical silver since 2004. I have never brought a single gram of gold. I was of the opinion (in 2004) that silver was for retirement years. Now I feel that I am right. The current silver price rise is just the beginning. As usual, silver investing is not for everyone. Silver has a history of scary price crashes and narrow price ranges for periods that test our patience. I am used to it. I have seen it all.

WHAT CAN CAUSE A BEARISH TREND (IF ANY) IN GOLD, SILVER, AND PLATINUM TILL THE END OF 2026?

There have to be alternative safe havens away from gold/silver so that short-term investment flows switch from gold/silver to other asset classes.
A range-bound price or narrow range price consolidation between one month to two months.
Truce or deal is there in the global trade war in 2026. (India, China, and the rest of the world.).
US dollar index moves into a bullish trend.
US stock markets have been sinking or in a falling trend for three to nine weeks continuously.
The length of the fall is important and not the percentage fall.
Unknown factors due to the US Senate elections in November 2026.

Every Tom-Tick and Harry on social media are giving absurd bullish short-term price targets for gold and silver. These social media fin-influencers never talked about investing in gold/silver two years back. People get easily brainwashed by social media influencers. This is the reason why I worried over the pace of rise and not the actual rise. Be careful. It is your money. Less Return is better than eroding our capital. Do not get brainwashed by social media fin-influencers. (At GoldSeek, every writer has been bullish in gold/silver since 2003. There has been a unanimous view to allocate a good percentage in physical gold and physical silver, ETF, etc. Goldseek writers do not brainwash readers.)

Federal Reserve meeting on Wednesday will have a zero impact on the trend of precious metals and non-ferrous metals. It should be a technical trade for the next two weeks. A big gap will open (around Singapore open) will be there every day for the next two weeks.

SPOT SILVER – current price $48.11

Spot silver has to trade over $47.30 on a daily closing basis this week to rise to $50.80 and more.
A daily close below $47.30 for five consecutive trading sessions is needed for a big crash.
There can be some very sharp two-way price moves.
Views are intraday unless otherwise specified.

Disclaimer

The investment ideas provided is purely independent view point and are solely for collective learning and for academic interests. There is no commercial benefit accruing or have deemed to accrue to me out of providing such investment ideas.

The investment ideas shared here cannot be construed as investment advice or so. If any reader is acting on these advices, they are requested to apply their prudence and consult their financial advisor before acting on any of the recommendations made here. I am not responsible to anybody in the event of profits and losses (if any) upon acting on such advice.

I hope that our reader is aware about this well aware of the risk involved in trading in commodity derivative trading.

Disclosure: I trade in India's MCX commodity exchange. I have open positions in India's MCX commodity future. I do not trade in CME future or OTC spot gold and spot silver.

NOTES TO THE ABOVE REPORT