Market Summary (Oct 7, 2025)

We enter the week with a clear macro bias: Japan’s election of a hawkish, export-driven leader has sent the yen sharply lower and restored gold’s mantle as the go-to haven. In Europe, the surprise resignation of France’s prime minister has kept the euro on the back foot, while in the US the ongoing government shutdown continues to cap dollar strength and bolster precious metals. Gold futures have already cleared 4,000 and remain on track for multi-year highs—Goldman Sachs now pegs year-end ’26 nearer 4,900—driven by sticky ETF inflows and steady central-bank buying. FX markets are positioned for further yen weakness, euro consolidation below key trendlines, and dollar downside until Washington resolves its fiscal impasse.