The week was dominated by political uncertainty and mixed data across economies. In the US, a partial government shutdown dragged on into its third week, delaying many economic releases. Lawmakers hinted at possible resolution, but no breakthrough emerged before the weekend.
Gold’s price just plunged sharply over Monday-Tuesday, erasing the past week’s gains and stirring up real volatility. The drop was roughly 6% over those two sessions – the biggest one-day fall in over a decade – and it came with no obvious news trigger.
The oil price surge during early 2025 has made energy costs a primary factor behind inflation growth. The ongoing high US household inflation expectations have led investors to use oil as their inflation protection strategy. The oil market now leads the way in determining inflation rates and dollar value and market sentiment.
US markets opened the week in limbo as the government shutdown entered its third week, freezing major data releases. Fed officials stepped into the void, reinforcing a gradual easing bias. Core inflation remains sticky: US core PCE inflation ran about 2.9% year-on-year in August. With the shutdown delaying US CPI (now shifted to late October) markets clung to Fed signals.
Bitcoin’s done it again – shot past the $125,000 mark and shook the market. In just a few days, it’s jumped roughly 14%, sending volatility right back to the levels we haven’t seen in months. The mood’s flipped fast – from cautious to full-on excited – with everyone pointing fingers at ETF inflows, safe-haven demand, and a wave of institutional buying.
