Trump and Xi to Meet in South Korea, Gold Faces Profit-Taking Pressure

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Update: Thursday, 23/10/2025 - 12:34 PM
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The strengthening of the US dollar has been temporarily halted in trading on Wednesday, yet positive sentiment prevails, affecting movements in Thursday’s trading (October 23, 2025).

The easing of tensions between the US and China has contributed to a favorable outlook for the dollar. US President Donald Trump confirmed yesterday that he will meet with Chinese President Xi Jinping during the APEC event on October 31 and November 1 in South Korea.

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GOLD
Gold (XAUUSD) prices fell by $44.84, or 448.4 pips, reaching $4,097.98 per troy ounce in Wednesday’s trading after nearly dropping below $4,000 per troy ounce.

The trend of profit-taking in Gold that began on Tuesday continues, largely due to a diminished appeal for Gold as a safe haven. This shift comes in response to the alleviation of US-China tensions after Trump mentioned his upcoming meeting with Xi Jinping.

This sentiment is likely to continue influencing Gold, especially considering the substantial rise experienced throughout the year, indicating potential further profit-taking.


OIL
Oil prices (CLS10) surged by $1.81 to $59.37 and later climbed to $60.57 per barrel today. This increase is attributed to sanctions imposed by the US government on two major Russian energy firms, Rosneft and Lukoil.

These sanctions may decrease oil supply from Russia, providing a positive sentiment for Oil prices.


EURUSD
The EURUSD pair saw a slight increase of 105 points, reaching 1.16069 in trading on Wednesday, indicating a temporary halt in the strengthening of the US dollar. However, with President Trump announcing his meeting with President Xi, the likelihood of a trade war between the two nations appears to diminish.

This factor is expected to maintain a positive sentiment toward the US dollar, potentially exerting downward pressure on EURUSD.


GBPUSD
GBPUSD experienced a decline of 130 points (13 pips), landing at 1.33505 in Wednesday’s trading after dropping to 1.33054. The dip was influenced by data from the UK revealing a slowdown in core inflation growth for September.

This release has sparked expectations that the Bank of England (BoE) may consider cutting interest rates soon if the slowing trend continues. This sentiment is anticipated to impact GBPUSD movement in the European trading session.


USDJPY
USDJPY closed flat at 151.897 in trading on Wednesday following a sharp rise the previous day. In Thursday’s trading, USDJPY climbed to 152.571, reflecting a continued positive sentiment for the US dollar while the yen remains under pressure.

Market participants are keenly awaiting whether Japan’s new Prime Minister Sanae Takaichi will implement fiscal stimulus that could apply further pressure on the yen. This situation is likely to continue affecting USDJPY movements in the European trading session.


NASDAQ
The Nasdaq index fell by 225 points to 25,039 during Wednesday’s trading. The decline in Tesla shares has exerted negative sentiment on the Nasdaq index.

Concerns intensified after the US Treasury Secretary mentioned considerations for plans to restrict the export of American software to China. This sentiment is expected to keep influencing Nasdaq movements in the European trading session.


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