MPC Morning Call 10th October 2025 – Gold and Silver hit Fresh Record highs (then retreats) as Trump announces “peace in the Middle East”

Overnight – Gold and Silver hit Fresh Record highs (then retreats) as Trump announces “Peace in the Middle East”

Silver finally set a new record high above $50 overnight after a long 45 year wait, joining gold in the stratosphere, until profit takes and Trump announcing “Peace in the Middle East” and nominating himself for the Nobel Peace prize

Markets are navigating several important themes in October 2025, including analysis of the Federal Reserve’s latest meeting minutes and excitement around artificial intelligence that has pushed stock prices higher throughout the year. Investors are also grappling with an ongoing federal government shutdown in Washington, which has lasted over a week and threatens to delay further economic data releases. Amid market uncertainty, New York Fed President John Williams spoke of the likelihood of further interest rate cuts in 2025 due to risks from a cooling labor market but cautioned that slower employment growth does not necessarily signal an imminent recession for the U.S. economy. The minutes from the Fed’s September meeting revealed a divided committee, debating the impact of a sluggish labor market and persistent inflation, with most officials supporting additional rate cuts though the timing remained unclear.

On the corporate front, PepsiCo posted third-quarter results that exceeded expectations, citing strong demand for healthier sodas and energy drinks, and outlined plans to adjust product and packaging strategy to better fit consumer trends. This update follows activist investor Elliott Management’s push for cost-cutting measures at Pepsi, including considering the sale of brands and spinning off its bottling operations. Delta Air Lines largely avoided disruption from the government shutdown despite industry-wide travel concerns, reporting record operating revenue and lifting its full-year guidance. In contrast, Ferrari NV’s shares fell sharply after the automaker revised its electrification goal downward, and Oracle Corporation saw gains after positive analyst coverage predicting strong future growth.

Gold markets saw a modest retreat from record highs above $4,000 per ounce following a ceasefire between Hamas and Israel, tempering some safe-haven demand. However, gold continues to hover near peak levels due to sustained concerns about Japanese fiscal stability, the U.S. shutdown, and French political unrest. The Fed’s minutes, which maintained expectations for further rate cuts, also provided support to bullion prices in a landscape marked by heightened financial and geopolitical risks.

President Donald Trump has brokered a peace agreement between Israel and Hamas, marking the first phase of a plan to end the two-year Gaza war. The deal establishes a ceasefire, calls for the release of all remaining Israeli hostages by Hamas in exchange for the freeing of Palestinian prisoners, and includes a partial Israeli withdrawal from Gaza. This development, resulting from months of negotiations and international mediation, is widely recognized as a significant diplomatic achievement, though there are still challenges and uncertainties ahead regarding the full implementation of peace.