Last week, Middle East tensions intensified amid attacks and continued disruptions in the Strait of Hormuz, pushing oil prices higher. President Trump also waived additional tariffs of up to 100% on major buyers of Russian energy. On the macro front, US consumer and producer inflation picked up in September, reviving expectations of further Fed tightening. Inflation also firmed in the euro area, India and China, while strong exports widened China’s trade surplus.
Global markets faced heightened geopolitical risks and signs of slowing growth. Middle East tensions lifted energy prices, while the US eased sanctions on Russian diesel. Meanwhile, US fiscal and trade deficits widened, consumer sentiment weakened and Fed minutes were hawkish. In Europe, German activity slowed and UK services softened. In Asia, China’s holiday spending was uneven and the RBI raised rates by 25bps to 5.5%, its first hike in nearly four years.
Global central banks remain on pace with gold accumulation this August, with reported net buying totalling 39t. Large, consistent buyers of gold in 2026 showed continued activity in the month, with China taking the lead, followed by Uzbekistan and Poland.
Geopolitical tensions and energy markets remained in focus last week, while investors also watched US data for clues on the Fed's policy path. A weaker-than-expected jobs report and stable PCE inflation reduced expectations of near-term rate hikes. Elsewhere, inflation accelerated in the Eurozone and Tokyo, China announced fresh growth-support measures and the Reserve Bank of Australia raised rates.
In this episode of Unearthed, hosts John Reade and Joe Cavatoni are joined by Dr. Robin Kolvenbach, CEO of Argor-Heraeus, a major precious metals refining company located in Mendrisio, Switzerland. Together they explore what responsible sourcing, traceability and sustainability mean in practice for the modern gold supply chain.
Gold has received increased attention from some pension funds as they reassess portfolio construction against a backdrop of geopolitical tensions, inflation shocks and a less reliable equity-bond correlation.
