Gold Stays Strong with Fed Rate Cut in October Seen as a Done Deal - 2.10.2025

The live dollar index stayed flat after trying to rise early in the day, last trading around 97.74.

• EUR/USD was steady at $1.1733 after reports that the U.S. will give Ukraine intelligence to target Russia’s energy network.
• GBP/USD held at $1.3474 with little movement.
• USD/JPY edged up 0.1% to 147.18.
• AUD/USD climbed to $0.6617 after data showed weak household spending in August.
• Yuan also weakened slightly, trading at 7.1321 per dollar.

U.S. stocks ended higher despite the shutdown. The Dow Jones gained 0.1%, the S&P 500 rose 0.3%, and the Nasdaq was up 0.4%. Healthcare stocks led the rally after Pfizer agreed to lower drug prices in return for tariff relief.

The ADP jobs report showing a loss of 32,000 positions weighed on sentiment early, but investors later shrugged it off. History shows markets usually hold up during shutdowns, and this week was no exception.

Outside the U.S., Japan’s Nikkei fell 0.8%, while Australia’s main stock index closed flat. Markets in China and Hong Kong were closed for holidays.

Oil prices bounced back after three days of losses. Brent crude rose 0.57% to $65.72 per barrel, and WTI climbed 0.55% to $62.12.

Prices got support from worries about tighter sanctions on Russian oil and China’s stockpiling demand. Still, rising supply from OPEC+ and a U.S. government shutdown kept gains in check.

Bitcoin is closing in on its all-time high of $124,128. Traders call this rally “Uptober” (October's historical tendency to be a strong month for Bitcoin and other cryptocurrencies) as the coin has started the month strong.

The shutdown is driving demand for cryptocurrencies and is seen as a store of value outside government control. At the same time, investors are betting the U.S. economy could lose $15 billion in GDP each week the shutdown continues.