Headline: Markets Snapshot: Gold Climbs, Crypto Rallies as Shutdown Jitters Ease
Key Takeaways
An ebb in U.S. shutdown fears helped lift risk appetite across markets, sending Bitcoin higher and supporting U.S. equity futures, even as weak economic data kept a firm bid under gold. Meanwhile, fresh signals from Asia—ranging from China’s upgraded growth outlook to Japan’s stance on sales tax—shaped investor expectations for policy and economic momentum.
China’s gold trade remains in sharp focus. Exchange-traded funds backed by the metal surged 164% in the first nine months of 2025, underscoring robust domestic demand for safe-haven assets. The People’s Bank of China extended its gold-buying streak to an 11th consecutive month, taking official reserves to 2,303.5 tons. While mine output rose 3.6% year-on-year, consumption slipped nearly 8%, suggesting a divergence between investment demand and physical end-use. In parallel, Goldman Sachs lifted its China GDP forecasts to 4.8% for 2026 and 4.7% for 2027, pointing to resilient exports, reduced tariff tensions following the Trump–Xi meeting, and Beijing’s emphasis on technology and manufacturing under its new five-year plan.
In crypto, Bitcoin jumped 4% to trade above $106,000, with Ethereum up 7%, though BTC remains about 15% below its peak. The improved risk tone also buoyed U.S. equity futures, where traders are monitoring big-cap tech performance. Nvidia is edging toward a buy zone, but caution persists amid lingering policy uncertainty. Despite progress toward a shutdown deal, economists warn that a prolonged disruption could tip U.S. fourth-quarter GDP into negative territory, with tourism and air travel seen as early casualties.
Gold prices advanced to $4,045 per ounce as softer U.S. data overshadowed optimism around a potential funding compromise. The Federal Reserve’s policy trajectory remains the key driver for precious metals and broader dollar dynamics in the weeks ahead. In Japan, Prime Minister Sanae Takaichi left the door open to a future sales tax cut but signaled no near-term move, citing the government’s revenue needs—another reminder that fiscal room in major economies is tightening just as growth signals turn mixed.
Key Points: – China gold ETFs rose 164% in the first nine months of 2025; PBOC extended gold purchases to 11 months, lifting reserves to 2,303.5 tons. – China’s mine output increased 3.6% year-on-year, while gold consumption fell nearly 8%. – Goldman Sachs upgraded China’s GDP forecasts to 4.8% (2026) and 4.7% (2027), citing stronger exports, easing tariffs, and policy support for tech and manufacturing. – Bitcoin climbed 4% above $106,000 and Ethereum gained 7%, though BTC remains about 15% below its highs. – U.S. shutdown worries eased, boosting stock futures, but a prolonged impasse could drag Q4 GDP into negative territory, with travel sectors most exposed. – Gold hit $4,045 per ounce as weak U.S. data supported safe-haven demand; the Fed’s policy outlook remains pivotal.
