Gold reverses after monster rally
The US dollar was higher as gold’s recent stellar run reversed sharply overnight, with the precious metal producing its biggest one-day fall since 2013.
Gold fell 5.6% on Tuesday, while silver lost 7.1% in a sharp correction after gold’s almost 70% rally so far in 2025.
The US dollar was the main beneficiary from the sell-off, with the USD index up 0.4% in its third day of gains.
Aussie hit by metals sell-off
The AUD was the hardest hit by the move, with the AUD/USD down 0.4%.
Gold’s move higher has seen it overtake liquefied natural gas as Australia’s second-largest export, with only iron ore as a more significant contributor to the Australian trade market.
The kiwi was less impacted, with the NZD/USD down only 0.1%.
USD higher in Asia after Takaichi win
The US dollar was also boosted in Asia following Sanae Takaichi’s historic win as Japan’s first female prime minister.
Takaichi’s pro-stimulus stance as a supporter of “Abenomics” and criticism of Bank of Japan rate hikes have sparked expectations of looser monetary policy, hitting the JPY.
The USD/JPY surged past 151.50, its highest level in over a week, as traders priced in wider yield differentials and delayed BoJ tightening.
The AUD/JPY rebounded strongly from the one-month lows seen on Friday, while SGD/JPY neared one-year highs.
The USD/CNH was flat, while USD/SGD gained 0.3%.
Gold’s drop boosts USD
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 20 – 25 October
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
