UNEXPECTED FIGURE
Based on the latest consumer price index data, the U.S. experienced an unexpected rise in inflation in September. The CPI index recorded a 0.2% increase, contributing to an annual inflation rate of 2.4%. Without factoring in volatile food and energy prices, core inflation saw an even sharper rise of 0.3%, resulting in a 3.3% annual rate. This inflationary trend was driven primarily by upticks in the costs of food, shelter, used and new vehicles, medical care services, and apparel. As a response to this development, it is believed that the Federal Reserve will continue interest rate cuts to counteract the pressure caused by rising prices.
RISING UNEMPLOYMENT
According to the U.S. Department of Labor, in the week ending on October 4, a total of 258,000 newly applied for unemployment insurance benefits, surpassing initial expectations and exceeding the previous week’s numbers. The data also revealed an advance seasonally adjusted insured unemployment rate of 1.2% and a 4-week moving average of 231,000, showing a slight increase from the previous week. Furthermore, continuing claims saw a rise of 42,000 to 1.861 million for the week ending September 27. Overall, these figures demonstrate a concerning trend in the job market, with more individuals seeking unemployment benefits and an increase in ongoing unemployment claims.
COMING SOON
It has been announced that Bitcoin ETF options will likely be available in the U.S. by early 2025. This new development offers investors the chance to buy or sell Bitcoin at a predetermined price, aiming to mitigate market risks. And while the approval process is still ongoing with no set deadline for final decisions, the introduction of these options could provide financial advisers with a tool to navigate market volatility when considering Bitcoin investments. In addition, it is worth noting that the availability of Bitcoin ETF options may also encourage a broader range of investors to enter the Bitcoin market, particularly during uncertain times.
NOT EVERYONE AGREED
The latest Federal Reserve minutes revealed that although officials agreed to implement a half-percentage point cut in interest rates at the September meeting, there was disagreement among members, with some advocating for a smaller reduction due to concerns about inflation and the labor market. Despite this, the majority favored the larger move. At their September meeting, Federal Reserve officials opted to cut interest rates by half a percentage point but were divided on the decision. Some members preferred a smaller reduction due to concerns about inflation and labor market conditions, with one dissenting vote against the larger cut. In addition, the minutes revealed discussions regarding the possibility of a quarter-point reduction, and the data since the meeting seems to support this as it showed a stronger labor market than anticipated. Nevertheless, it is worth highlighting that according to the minutes, it seems like policymakers lean toward the preference for a more gradual approach to policy normalization.
SALES REBOUND
After a sharp decrease, retail gold sales in China are now going up again. The drop happened because gold prices went up, market confidence went down, and the property market slowed. But in August, there was a positive 26% jump in gold sales, showing that the demand is picking back up. Let’s remember that China is a big player in the global gold market, accounting for 13% of the world’s gold demand, and this increase in sales could have a significant impact on global gold consumption. The fact that more people are buying gold in China is a good sign for the gold market overall. It suggests that the gold market might be on the path to recovery, with more activity expected in the future.
