DBT Bureau
Pune, 3 Nov 2025
- Spot gold stabilized today following two consecutive weeks of decline, as the strengthening US dollar, buoyed by diminishing expectations of another rate cut, put a lid on prices. Meanwhile, concerns over the ongoing US government shutdown and concerns of broader economic growth lent support.
- The Federal Reserve cut interest rates by 25 basis point to 3.75%-4.00% range, while Fed Chair Jerome Powell’s remarks suggest that the lack of federal government data may put another interest rate cut out of reach this year.
- China discontinued a long-standing tax exemption for certain gold retailers, a move that could dampen the surge in gold purchases within the world’s largest consumer market.
- U.S. President Donald Trump and Chinese Premier Xi Jinping have officially concluded a trade agreement. As part of the deal, China will initiate the purchase of American energy products, and tariffs on Chinese imports will be reduced from 57% to 47%. Additionally, China has pledged to take decisive measures against the illegal production and export of fentanyl. As part of the trade agreement, China has consented to postpone the implementation of rare earth export controls. However, the restrictions have not been permanently lifted.
- Crude oil prices climbed following OPEC+’s decision to delay production increases in the first quarter of 2026, alleviating concerns about a potential supply surplus. However, the gains were limited by disappointing factory output data from Asia, which signaled weaker demand prospects.
- OPEC+ agreed to raise output by 137,000 barrels per day in December, the same as for October and November.
- LME copper hovered near record highs due to mounting supply shortages, driven by substantial output declines from leading mining companies. However, gains were tempered by sluggish factory activity in China, the world’s largest consumer of industrial metals.
- In the January to September period, the global miner Anglo American reported a 9% drop in output, while Glencore saw a 17% decrease.
