Australian dollar under pressure despite strategic minerals deal with the US

Key Movers

Gold prices plunged more than 5.5% on Tuesday, marking the metal’s steepest one-day decline since August 2020, as investors appeared to lock in profits ahead of key US inflation data. Spot gold (XAU/USD) fell sharply to around $4,114, retreating from a daily high of $4,375 and just a day after hitting a record peak of $4,380. The selloff comes amid a broader recovery in the US Dollar, with the US Dollar Index (DXY) climbing 0.36% to 98.94. The stronger greenback has made gold more expensive for foreign buyers, adding to downward pressure on prices. Traders are positioning cautiously ahead of the September Consumer Price Index (CPI) report, due for release on October 24. The data is expected to offer fresh clues on inflation trends and the Federal Reserve’s next policy moves. Market expectations have shifted slightly toward continued policy easing by the Fed at its final two meetings of the year, especially after Chair Jerome Powell acknowledged signs of a weakening labor market in a speech last week. In addition to the CPI release, investors are also closely watching the upcoming Fed policy meeting next week, which could further shape the outlook for interest rates and precious metals.

The Dow Jones Industrial Average (DJIA) surged to a new all-time intraday high on Tuesday, briefly breaking above the 47,000 mark and reaching 47,126, as a wave of strong corporate earnings ignited a broad-based rally—particularly among traditional “old economy” stocks. Investors piled into companies tied to manufacturing, industrials, energy, and consumer goods—sectors often overshadowed by the high-growth technology and information services names that dominate broader market indices. The rally comes as several blue-chip firms reported quarterly earnings well above Wall Street expectations, reinforcing investor confidence in the resilience of the U.S. economy despite ongoing global headwinds. The outperformance of these legacy sectors reflects a broader market shift toward value-oriented stocks amid growing speculation that interest rates may have peaked. With inflation showing signs of cooling and the Federal Reserve signaling a more cautious approach to further rate hikes, investors are seeking exposure to companies with strong balance sheets, consistent dividends, and tangible outputs. Analysts also noted that the Dow’s surge comes at a time when markets are digesting a mixed bag of macroeconomic data, including softening labor market indicators and moderating inflation, which could support a more accommodative Fed stance heading into 2026. The Dow’s milestone reinforces a narrative of renewed investor interest in economically sensitive and cyclical names—many of which had lagged during the tech-driven bull runs of recent years. With earnings season in full swing, market participants will be closely watching whether this rally in industrial and consumer-heavy stocks has legs, or if it signals a broader sector rotation in progress.