Market Analysis 22.10.25

Gold Prices Crash by Over 6%

Gold prices crashed on Tuesday by over 6%. A more positive market mood and resurgent US Dollar demand have fuelled the decline.

Market sentiment has improved following more optimistic comments from US President Donald Trump regarding a potential trade deal with China. The news comes before the economic conference in South Korea later this month, where he will likely meet Xi Jinping. Elsewhere, global equities have shown growth despite the ongoing US government shutdown.

Following the news, gold has plummeted from its highs with powerful bearish momentum which has engulfed most of the previous week’s gains. The price looks set to hit 4000, where it may find potential support along with the ascending trendline.

XAUUSD Daily

Similarly, silver has crashed by over 7% as the price shows tremendous downside momentum following a break from the ascending trendline. The price is stalling around the 48 pivot however it looks set to break through that level soon.

XAGUSD Daily

Canadian CPI Rises as USDCAD Drops Rapidly

Canadian CPI was 0.1% in September, which helped increase inflation to 2.4%. A combination of gasoline prices and food prices has accounted for much of the rise. Food prices were a significant problem last month as they rose 0.5% and are now up 4% compared to 12 months ago. The primary drivers behind rising food prices include meat, sweets and coffee, which contribute to a difficult decision on rates for the Bank of Canada next week.

After the news, USDCAD has dropped to test the 1.4 pivot and test the ascending trendline for support. If the price can break through the ascending trendline it will likely test the 1.3975 pivot soon.

USDCAD Daily