US: FED Reverse Repo Operation

• Spot gold registered another fresh all-time high of $4,059.3/oz earlier today, despite further gains in the USD index to its highest level since early August, as the ongoing US government shutdown continued to drive safe haven demand.
• Spot is currently up by 1.6% at $4,049/oz.
• TD Securities says that gold looks overbought and caution that, given the speed and magnitude of the rally since mid-August, there could be a significant unwind in the relative near-term.
• However, they ultimately remain bullish and expect gold to rise above $4,400 in H1 2026.
• From a technical perspective, a bull cycle in gold remains in play and this week’s breach of $4,000/oz further reinforces the recent uptrend. Sights are on $4,074.54 next, a Fibonacci projection.
• Similarly, silver has also rebounded sharply today, rising to a high of $49.55/oz earlier, just below the April 2011 all-time high at $49.804, before paring gains slightly.
• Currently, silver is up by 3.1% to $49.3/oz.
• Meanwhile, crude is also extending the gains seen so far this week after the smaller than expected OPEC output rise for November and despite a larger than expected US crude stock build today.
• WTI Nov 25 is up by 1.4% at $62.6/bbl.
• Despite the recovery in WTI futures from the most recent low, a bearish theme remains intact. Initial support is at $60.40, the Oct 2 low, while initial firm resistance has been defined at $66.42, the Sep 29 high.

• RES 4: 154.80 High Feb 12 
• RES 3: 154.39 76.4% retracement of the Jan 10 - Apr 22 bear leg
• RES 2: 153.15 High Feb 14  
• RES 1: 153.00 High Oct 8
• PRICE: 152.70 @ 16:21 BST Oct 8
• SUP 1: 150.92 High Sep 26  
• SUP 2: 149.96 High    
• SUP 3: 148.46 20-day EMA  
• SUP 4: 147.84 50-day EMA

A bullish theme remains intact in USDJPY and this week’s gains reinforce current trend conditions. The move higher has resulted in a breach of the key medium-term resistance at 150.92, the Aug 1 high. The clear break of it confirms a resumption of the bull leg that started Apr 22. This paves the way for an extension towards 154.39, a Fibonacci retracement point. Initial support to watch lies at 150.92, the Aug 1 high.  

Bloomberg reports *LECORNU SAYS MACRON TO BE ABLE TO NAME NEW PREMIER IN 48 HOURS" 

"“There are possibilities for a compromise in parliament,” Lecornu said on France 2 television Wednesday. “There is an absolute majority in the national assembly that rejects a new dissolution.”"