Gold and Silver Pull Back — Smart Money Buys When Others Wait 
Daily News Nuggets | Today’s top stories for gold and silver investors
November 4th, 2025
Is the AI Boom Built on Hype or Hard Numbers?
The AI industry crossed a stunning milestone last week: Nvidia hit a $5 trillion valuation, making it the first company in history to reach that mark. That single chipmaker now accounts for roughly 8% of the entire S&P 500. But beneath the staggering numbers, cracks are showing. OpenAI’s ChatGPT — the most successful AI product to date — loses money almost every time you use it, racking up a $13.5 billion loss in the first half of 2025 despite $4.3 billion in revenue.
Deutsche Bank warns the boom is “unsustainable,” while Bain projects the industry needs $2 trillion in annual revenue by 2030 just to maintain current spending levels. Perhaps most telling: an MIT study found 95% of businesses deploying AI have gotten zero value from it. The industry is sustained not by profits, but by circular financing deals and relentless storytelling about a transformative future. If history is any guide, when tech bubbles deflate, investors typically rotate into tangible assets—and that’s when gold and silver shine.
The market didn’t wait long to react.
Tech Stocks Sink as Valuation Fears Hit Fever Pitch
Wall Street’s AI darlings took a beating Tuesday as concerns about stretched valuations triggered a broad sell-off. S&P 500 futures dropped 1.1% while the Nasdaq 100 slid 1.5%, with Palantir plunging 8% despite beating earnings expectations and raising guidance. The software company trades at a staggering 700 times earnings, raising alarms among investors about sustainability.
Goldman Sachs CEO David Solomon warned overnight that a 10-20% correction is ‘likely’ within the next year, echoing similar cautions from Morgan Stanley. Adding to uncertainty: a government shutdown — now tied for the longest on record — has left the Fed navigating blind without key economic data.
The sell-off isn’t confined to equities. Risk appetite is evaporating across asset classes.
Bitcoin Slides to Two-Week Low Amid Risk-Off Mood
Bitcoin continued its retreat Tuesday, falling as much as 3.1% to $103,578—approaching its lowest level since mid-October. Ether dropped 3.4% below $3,500, deepening losses from recent highs. The slide reflects broader weakness in risk assets as investors reassess frothy valuations and an increasingly unpredictable Fed.
Despite the pullback, Bitcoin remains well above $100,000 and up substantially for the year, though it’s shed roughly 18% from its October peak near $126,000. The selloff comes as traditional safe havens like gold face their own headwinds, suggesting this is less about rotation into defensive assets and more about wholesale de-risking.
Even traditional safe havens aren’t catching a bid in this environment.
Gold Slips Below $4,000 as Fed Rate Cut Hopes Fade
Gold slipped below the $4,000 mark Tuesday, pressured by a strengthening dollar and fading expectations for another Fed rate cut in December. After Fed Chair Jerome Powell suggested last week that another reduction this year is “far from a foregone conclusion,” traders slashed their odds for a December cut from over 90% to 65%.
Gold is up 53% year-to-date, but still hovers 8% below its October record high. Analysts say the yellow metal’s near-term direction hinges on upcoming U.S. economic data and Fed commentary. Despite the pullback, gold remains firmly above key technical support near $3,970, with strategists watching closely for any signs of economic weakness that could revive rate-cut hopes and send gold rallying again.
The paradox? Gold’s selling off on Fed hawkishness, but if the economy actually weakens or inflation persists, the metal could find its footing fast. For now, it’s caught between competing narratives.
Treasury Admits Inflation “Above Target” Despite Trump’s Claims
The Treasury Department quietly admitted Monday what markets already suspect: inflation ‘remained above the target of 2 percent in the third quarter’ — even as President Trump insists ‘we have no inflation.'”
The disconnect is striking. While Trump told CBS’s ‘60 Minutes‘ he’s ‘already taken care of’ inflation, official data tells a different story: 3% annually in September, with increases every month since April.” Food prices for both groceries and restaurants “increased moderately,” Treasury reported, with beef hitting record highs.
The administration’s aggressive tariff strategy — now the largest tax increase as a share of GDP since 1993 — adds an estimated $1,300 annual burden per U.S. household. For precious metals investors, this matters: persistent inflation above the Fed’s target, combined with tariff-driven price pressures, creates exactly the environment where gold and silver historically thrive as inflation hedges. The question isn’t whether inflation exists — it’s whether the Fed will act accordingly.
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