The upward trajectory of Gold prices (XAUUSD) shows no signs of slowing down as European trading commenced on Wednesday (October 1, 2025). Meanwhile, EURUSD exhibited volatility in response to the release of inflation data (consumer price index/CPI) from the Eurozone.
For the month of September, inflation was reported to grow by 2.2% year-on-year (YoY), aligning with the forecast set by Trading Central, but surpassing the previous month’s rise of 2%. Core inflation, excluding food and drink sectors, also remained steady at 2.3% YoY, consistent with both the prior month and the forecast by Trading Central.
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After the announcement, the EURUSD remained volatile, hovering around 1.17500.
A significant focus for the forex market is actually the impending shutdown of the U.S. government, which officially commenced on October 1, U.S. time. The markets are now closely watching how swiftly the U.S. Senate, from both the Republican and Democratic parties, can reach an agreement on the federal budget to minimize the duration of the shutdown.
The longer the shutdown persists, the more detrimental its impact will be on the U.S. economy. The Congressional Budget Office estimates that around 750,000 government employees may be furloughed.
This situation could pressure the U.S. dollar, giving a boost to EURUSD. Meanwhile, the demand for Gold as a safe haven asset continues to rise. Consequently, Gold prices have surged to US$3,895 per troy ounce, reflecting an increase of over US$37 or 370 pips from the previous Tuesday’s close.
From the beginning of the week to this record price, Gold has risen by more than US$135, and it is now on the verge of reaching the US$3,900 per troy ounce mark.
