GOLD REMAINS AT RECORD HIGHS

Gold prices continue to reach all-time highs, surpassing $3,790 per ounce just before midday on Tuesday, boosted by last week’s interest rate cut by the US Federal Reserve.

With recent gains, gold has appreciated nearly 42% so far this year, including an 8% rise in September alone.

This surge also coincided with China’s announcement of its plan to become a custodian of foreign sovereign gold reserves, a move designed to strengthen its position in the global precious metals market.

Additional support for gold comes from persistent doubts about US inflation and President Donald Trump’s repeated attacks on the independence of the Federal Reserve.

As interest rates fall, gold becomes more attractive since it pays no interest or dividends, reducing the opportunity cost of holding the metal.

WHAT’S HAPPENING WITH THE EURO?

The euro rose again on Tuesday, surpassing $1.18 due to dollar weakness, as markets anticipate further Fed rate cuts this year.

The European Central Bank (ECB) set the reference rate at $1.1793. The euro remained strong despite US data showing cooling economic activity in September, though growth continues, according to S&P Global.

STOCK RECOMMENDATION OF THE DAY: PROCTER & GAMBLE (P&G)

Founded in 1837 and headquartered in Cincinnati, Procter & Gamble (P&G) is a global consumer goods giant, with over 300 brands including Gillette, Ariel, and Tampax, distributed across 160+ countries.

Currently, P&G shares are trading at attractive entry points:
• RSI in retracement zones.
• Close to 0.5 Fibonacci levels.
• In a bullish trendline.

Fundamentally, P&G remains one of the strongest companies in its sector, making it an appealing option for long-term investors.

NVIDIA & OPENAI: A $100 BILLION DEAL

Nvidia plans to invest $100 billion in OpenAI, an alliance expected to generate $400 billion in long-term revenue for the chipmaker, according to UBS.

The funds will be used to build large-scale AI data centres, powered by Nvidia’s advanced chips—essential for running OpenAI’s systems like ChatGPT.

Interestingly, much of this capital will return to Nvidia itself, as OpenAI relies on the company’s chips to fuel its growth and innovation.

WHERE TO INVEST IN A LOW-RATE SCENARIO?

The Fed’s interest rate cuts benefit sectors such as consumer goods, payments, and financials. Lower borrowing costs encourage spending, stimulate business investment, and improve credit demand.

Current stock opportunities:
• Visa – leader in digital payments, with global expansion potential.
• Coca-Cola – strong brand, high dividend yield, stable fundamentals.
• Costco – robust membership model, steady growth, long-term resilience.

From both a fundamental and technical perspective, these stocks show undervaluation and strong potential for recovery.

POWELL SPEAKS: KEY TAKEAWAYS

Fed Chairman Jerome Powell warned on Tuesday that the central bank faces a tough balancing act with “no risk-free path” ahead, as it weighs inflation risks against labour market weaknesses.

• GDP growth slowed to 1.5% in H1 2025 (vs 2.5% last year).
• Unemployment rose to 4.3% in August.
• Inflation remains “somewhat elevated” above the Fed’s 2% target.

Powell also suggested that tariff-driven price hikes may prove short-lived, with inflationary effects likely to spread across several quarters.

🇦🇷 SUPPORT FOR ARGENTINA

US Treasury Secretary Scott Bessent stated that Washington is prepared to deliver “large and forceful” measures to stabilise Argentina’s currency.

IMF Managing Director Kristalina Georgieva backed the comments, emphasising Argentina’s strategic importance for the United States.

Argentine stocks traded in New York (ADRs) surged as much as 17.5%, with BBVA among the top performers.

₿ BITCOIN ETFS: BLACKROCK’S REVENUE MACHINE

BlackRock’s crypto exchange-traded funds (ETFs) have become a major revenue driver, generating $260 million annually.

• Bitcoin ETFs: $218 million.
• Ether ETFs: $42 million.

This success positions BlackRock as a leader in the crypto investment space, while also creating a benchmark for traditional asset managers seeking profitable models in digital assets.

Conclusion

Markets are moving fast — from gold highs and crypto booms, to AI mega-investments and Powell’s cautious stance. For traders and investors, the coming weeks offer both opportunities and challenges across commodities, tech, and financial markets.