On Tuesday (October 31st), COMEX gold futures slightly declined in the Asian market, but still held above the 2000 level. Currently trading near $2002.90 per ounce, boosted by safe haven demand in the context of the Israeli Hamas war and potential escalation of the Middle East conflict. Some people believe that the Federal Reserve may have ended raising interest rates, which is also a bullish factor in the metal market.

From the rebound in the US stock market, it can be seen that risk appetite increased at the beginning of the trading week, despite Israel's expected ground war against Hamas in the Gaza Strip. Smart Money knows that the possibility of this conflict escalating and involving other countries, including the United States, is still high, providing support for safe haven gold and silver.

The focus of this week is also on the central bank meetings of the Federal Reserve, Bank of England, and Bank of Japan. The Federal Open Market Committee (FOMC) meeting of the Federal Reserve starts on Tuesday morning local time and ends on Wednesday afternoon. Federal Reserve Chairman Powell will make a statement and hold a press conference. Most markets expect FOMC to suspend its interest rate hike cycle. The US employment report for October will be released later this week.

Nick Timiraos is one of the most closely related media figures to Federal Reserve observers. He wrote in the Wall Street Journal yesterday: "The rise in bond yields may end the Fed's historic rate hike." Timiraos stated in the article that the recent significant rise in bond yields has helped curb consumer and commercial borrowing, thereby reducing inflationary pressure, which may mean that the Fed will not raise interest rates again.

Yesterday, the major external markets saw a steady decline in the US dollar index. The crude oil price on the New York Mercantile Exchange has dropped significantly, trading at approximately $82.75 per barrel. The benchmark 10-year US Treasury yield is currently 4.894%.

From a technical perspective, the December gold futures price hit a three-month high last Friday, and bulls generally have a technical advantage in the near future. On the daily chart, gold prices are on an upward trend for the past four weeks. The next upward price target for bulls is to close above a solid resistance level of $2050.00, while the next short-term downward price target for bears is to push futures prices below a solid technical support level of $1950. The first resistance level was seen at last week's high of $2019.70, followed by July's high of $2028.60; The first support level was seen at last Friday's low of $1986.40, followed by $1973.60.

The December silver futures bulls have overall technical advantages in the near future. On the daily chart, a continuous four week upward trend in prices is shown. The next upward price target for silver bulls is to close above a solid technical resistance level of $24.05, while the next downward price target for bears is to close below a solid support level of $22.00. The first resistance level is seen at $23.75, followed by the October high of $23.88; The next support level was seen at yesterday's low of $23.135, followed by $23.00.