Significant volatility affected financial markets over the past week, triggered by the shutdown of the United States government, alongside political crises in France and Japan following the appointment of a new Prime Minister.
A major surprise emerged during trading on Friday when U.S. President Donald Trump expressed outrage and imposed a 100% import tariff on products from China, effective November 1. Furthermore, Trump also introduced export controls on software and canceled upcoming meetings with Chinese President Xi Jinping.
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The rising risk of increasing trade tensions between the U.S. and China continues to cast a shadow over market movements for trading on Monday (October 13, 2025).
GOLD
Political issues around the globe have pushed Gold prices (XAUUSD) to an all-time high of US$4,059.10 per troy ounce before ultimately closing the week’s trading at US$4,017.53 per troy ounce. Within the week, Gold surged more than US$130 or 1,300 pips.
Today, Gold skyrocketed over US$60 or 600 pips, reaching a record high of US$4,078 per troy ounce due to the escalating trade war between the U.S. and China.
Trump’s decision to raise import tariffs follows China’s implementation of export controls on rare earth metals, which are vital for industries such as electronics, electric vehicles, and defense. China currently supplies about 90% of the world’s rare earth metals, making these control measures a significant hurdle for nations reliant on these resources, including the United States.
China has also issued a warning of retaliation should the United States not reverse the tariffs. The ongoing trade tension between the two nations is likely to further boost Gold’s performance in European trading sessions.
OIL
The threat of a trade war between the U.S. and China caused Oil prices (CLS10) to plummet by US$3.22 to US$58.28 per barrel on Friday. This sharp decline reversed the gains made earlier in the week, bringing prices to their lowest point in five months.
However, today Oil prices rebounded to US$59.99 per barrel after U.S. Vice President JD Vance opened the door for negotiations with China. Nevertheless, China reiterated that the U.S. must cancel the tariff increase and engage in talks. They also indicated that there would be retaliatory measures against the U.S. if these tariffs stay in place.
The significant risks of an escalating trade conflict between the two countries continue to put pressure on Oil prices.
EURUSD
Political instability in France briefly drove the EURUSD down to its lowest point in two months last week. However, on Friday, the currency pair rose by 616 points (61.6 pips) to 1.16234 due to the pressure on the dollar from the rising trade war risks.
In today’s trading, EURUSD briefly dipped to 1.15917 before climbing back to 1.16276. The pair dropped after VP Vance’s initiation of negotiations, but the tough stance from China kept the risk of a trade war elevated, leading to downward pressure on the dollar, which is favorable for EURUSD.
GBPUSD
Similar to EURUSD, this currency pair hit its lowest level in over two months last week. However, the pressure on the dollar due to trade war fears allowed GBPUSD to rise by more than 600 points (60 pips) to 1.33576 on Friday.
Today’s trading of GBPUSD has shown considerable volatility, but the continued pressure on the dollar remains a positive sentiment driver for GBPUSD.
USDJPY
This currency pair experienced significant volatility last week. On Friday, USDJPY dropped by 1.857 (185.7 pips) to 151.153. Previously, over four days of trading, USDJPY surged more than 575 pips following Sanae Takaichi’s ascent to Prime Minister of Japan, who is inclined toward fiscal stimulus, causing substantial pressure on the yen.
However, the risk of a U.S.-China trade war led to the USDJPY’s decline on Friday, and this pressure is likely to persist into today.
NASDAQ
The Nasdaq index fell by more than 1,100 index points on Friday, reaching 24,176 and nearing its lowest level in the past month. Prior to this drop, Nasdaq was trading close to its all-time high before the crash due to increasing risks associated with the U.S.-China trade war.
The opening of negotiations by JD Vance caused Nasdaq to rebound to 24,854 in today’s trading. However, the heightened trade war risks continue to loom over Nasdaq’s performance.
