Markets Slip, Gold Soars Amid Policy & Political Jitters

Markets Slip, Gold Soars Amid Policy & Political Jitters

Post by : Naveen Mittal

Global Markets React: Records, Pullbacks & Safe-Haven Flows

Equity markets took a cautious turn as U.S. indexes edged lower after hitting record highs, reflecting a tug of war between optimism over future gains and anxiety over macro risks. The S&P 500 retraced slightly, while Nasdaq’s momentum cooled. Safe-haven demand sent gold futures to an all-time high near $4,000 per ounce. Treasury yields softened ahead of a major upcoming U.S. bond auction and a critical Federal Reserve meeting.

Drivers & Crosswinds

Investors are navigating a complex mix of forces. The U.S. government’s ongoing shutdown debate is injecting uncertainty into fiscal policy and markets. At the same time, political instability in France and Japan rattled investor confidence, spurring volatility in currencies and bonds. The yen weakened sharply after Japan’s ruling party picked a pro-stimulus leader. In France, an abrupt government resignation raised questions about budget stability and investor trust.

Adding to the global mix, the World Bank upgraded China’s 2025 GDP forecast to 4.8 percent, citing stronger-than-expected momentum. However, the bank warns that growth may slow in 2026 if export demand weakens and domestic stimulus eases. Investors are watching how China’s macro guidance and policy support unfold, as the country remains a pivotal anchor for global growth expectations.

Key Market Moves

  • Gold surged as uncertainty dominated, with safe-haven flows pushing prices toward new highs.

  • Treasury yields dipped modestly, reflecting demand ahead of auctions and cautious outlooks for U.S. rates.

  • Oil prices slipped amid concerns over demand in major economies and supply uncertainties.

  • Currencies: The yen slid against the dollar, while the euro weakened on France’s political shakeup.

Risks & What to Watch

  • Fed decisions and signals: Investors expect the Fed’s policy tone and dot plot revisions to drive markets.

  • U.S. fiscal gridlock: Continued shutdown risk could stall economic data releases and dampen sentiment.

  • China growth trajectory: Any signs of weakening momentum or policy pullback would reverberate across global markets.

  • Geopolitical / political surprises in major economies that could spark sudden shifts in risk appetite.

Disclaimer

This article is based on publicly available market reporting and credible economic sources as of October 2025. It is intended for informational purposes only and does not constitute investment advice or endorsement. Readers should consult financial professionals before making decisions.

Oct. 7, 2025 10:15 p.m. 115

global stocks, gold surge, treasury yields, U.S. shutdown, China GDP forecast, market volatility, economic policy, Japan stimulus, France politics, safe-haven inflows

EGA Proposes Bid for Brazilian Aluminium Firm CBA
Oct. 7, 2025 10:18 p.m.
UAE’s EGA explores acquiring Brazilian aluminium firm CBA to secure full supply chain control and expand into Latin America amid global commodity volatility
Read More
Markets Slip, Gold Soars Amid Policy & Political Jitters
Oct. 7, 2025 10:15 p.m.
Stocks pull back as gold hits record highs. Markets fret over U.S. shutdown, Fed outlook and China’s growth — risk appetite wavers globally
Read More
Let Her Be a Kid: A Child’s Life After Hamas Captivity
Oct. 7, 2025 10:12 p.m.
Two years after her abduction by Hamas, Avigail starts school under the care of her aunt and uncle — a young survivor seeking normalcy amid loss
Read More
Two Years On: Global Reactions to October 7 Attack
Oct. 7, 2025 10:08 p.m.
On the second anniversary of the Hamas attack, leaders and citizens mourn victims, demand hostages’ release, and renew calls for a ceasefire amid deep division
Read More
Gaza Babies Share Oxygen Masks Amid Blocked Aid
Oct. 7, 2025 10:02 p.m.
Newborns in Gaza are forced to rotate oxygen masks as Israel blocks essential medical equipment. The health system is on the brink of collapse
Read More
Gaza Anniversary Protests Ignite Debate Worldwide
Oct. 7, 2025 9:59 p.m.
Anniversary protests planned in cities globally to highlight Gaza suffering spark criticism over timing as leaders warn of provocation and community tensions.
Read More
Gaza Woman’s Grief Grows: Two Years, More Loss
Oct. 7, 2025 9:53 p.m.
Two years after her photograph gripped the world, Gaza’s Inas Abu Maamar endures fresh tragedy: loss of family, homelessness, hunger, and a war that refuses to
Read More
Inhumane Detention Claims: Gaza Flotilla Activists Speak Out
Oct. 7, 2025 9:48 p.m.
Swiss and international activists allege beatings, sleep deprivation and cruel treatment after Israel intercepted Gaza flotilla. Israel denies wrongdoing.
Read More
Syria & SDF Agree Ceasefire: Step Toward Unity
Oct. 7, 2025 9:44 p.m.
Syria’s defence minister and SDF commander agree on an immediate ceasefire to preserve the 2025 integration deal and stabilize northern Syria.
Read More
Sponsored