Key Takeaways
- Gold and Silver futures in India have soared to new all-time highs, with international gold prices also reaching a record $3,793 an ounce driven by a soft dollar and rate-cut expectations.
- Geopolitical tensions are escalating as China reportedly expands its commercial ferry fleet for potential amphibious operations against Taiwan, while President Xi Jinping is expected to pressure former President Trump on the issue.
- Asian markets showed mixed movements, with some indices advancing as the dollar weakened amid U.S. shutdown fears and post-inflation report optimism.
- Occidental Petroleum (OXY) is reportedly in talks to divest its OxyChem unit for at least US$10 billion, signaling significant corporate restructuring.
- India's financial landscape saw minor shifts, with the 10-year benchmark government bond yield rising slightly and the Rupee strengthening against the dollar.
Global financial markets are buzzing this Monday, September 29, 2025, as gold prices hit an unprecedented high, geopolitical tensions in Asia intensify, and major corporate maneuvers capture headlines. The precious metals market is particularly active, with gold and silver futures in India reaching all-time highs.
Commodities Soar Amid Dollar Weakness and Rate Cut Bets
The price of gold has surged to a new record high, trading at $3,793 an ounce. This rally is primarily fueled by a softening U.S. dollar and growing expectations for Federal Reserve interest rate cuts later this year. Benign inflation data has solidified beliefs of upcoming rate reductions in October and December, propelling safe-haven bullion amidst economic uncertainty and cautious share markets. In India, gold futures have reached an all-time high of ₹114,552 per 10 grams, while silver futures also hit a record at ₹142,940 per kilogram.
Conversely, iron ore futures prices declined on Monday, pressured by sluggish steel demand and mounting inventories at Chinese ports. This downturn reflects ongoing nerves across China's steel chain, with rising stockpiles and cheaper raw materials signaling weak market sentiment.
Geopolitical Landscape Heats Up in Asia
The geopolitical arena in Asia is witnessing heightened activity. Chinese President Xi Jinping is reportedly set to increase pressure on former U.S. President Donald Trump to formally abandon Taiwan, seeking a major concession in upcoming negotiations. This comes as a classified U.S. intelligence report, seen by ABC News, reveals that China is rapidly expanding its commercial ferry fleet and modifying vessels to carry tanks for amphibious operations, signaling preparations for a potential Taiwan invasion.
Adding to the regional dynamics, diplomats from North Korea and China have committed to strengthening relations and opposing "hegemonism," a thinly veiled reference to the United States. This pledge underscores a united front against perceived unilateralism and power politics.
In economic news from China, the country's imports of liquefied natural gas (LNG) in September are poised to drop more than a fifth from a year ago. This extended slump in purchases is attributed to robust domestic supplies and piped gas flows.
Corporate Moves and Market Performance
Occidental Petroleum (OXY) is reportedly in talks to sell its OxyChem unit for at least US$10 billion, according to the Financial Times. This potential divestment could mark a significant strategic shift for the energy giant.
Meanwhile, JP Morgan has adjusted several target prices: raising CTP NV (CTPNV) target price to EUR 22.7 from EUR 21.2 and Sonova Holding AG (SOON) target price to CHF 195 from CHF 189. Conversely, the firm cut KB Home (KBH) target price to $53 from $63.
Asian shares generally edged up, tracking an uptrend on Wall Street following a U.S. inflation report. The dollar's weakening on U.S. shutdown fears also contributed to the positive sentiment in some Asian markets. China's CSI CSSW Securities Index notably rose more than 3%, while Thailand’s SETI advanced 0.68% to 1,287.45 points. India's financial indicators showed minor movements, with the 10-year benchmark government bond yield at 6.5311% (up from 6.5231% previously) and the Rupee opening stronger at 88.66 against the dollar (compared to 88.71 at its previous close).
In other news, an Australian state is set to provide vast data sets for AI development, highlighting the ongoing global focus on artificial intelligence. A new study, reported by AXIOS, reveals that left-wing terrorism has surged to its highest level in 30 years.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.