International News 30 October 2025
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Gold Prices Surge Nearly 2% Ahead of Fed Decision
Global gold prices rebounded sharply on Wednesday (Oct 29, 2025), rising close to 2% after touching a three-week low in the previous session. As of 11:29 local time, spot gold climbed 1.4% to US$4,005.28 per ounce, while U.S. gold futures for December delivery gained 1% to US$4,020.70. According to Peter Grant of Zaner Metals, the rally was largely driven by short-covering activity ahead of the U.S. Federal Reserve’s interest rate decision. The Fed is widely expected to cut rates by 25 basis points, following weaker-than-expected inflation data and signs of a cooling labor market. Lower interest rates typically support gold, which offers no yield, by reducing the opportunity cost of holding the metal. Still, optimism over a potential U.S.–China trade truce, following President Donald Trump’s announcement of a deal with South Korea, could dampen safe-haven demand in the near term. Despite recent volatility, gold has surged 52% year-to-date, boosted by geopolitical tensions, central bank buying, and expectations of monetary easing. After reaching a record high of US$4,381.21 on Oct 20, prices have since retreated about 8.5%. Grant noted that while the US$5,000 target may be out of reach for 2025, it remains achievable in early 2026 if macroeconomic uncertainty persists.
https://internasional.kontan.co.id/news/harga-emas-melonjak-2-jelang-keputusan-suku-bunga-the-fed
Hong Kong Monetary Authority Cuts Rates in Tandem with the Fed
The Hong Kong Monetary Authority (HKMA) lowered its benchmark interest rate by 25 basis points to 4.25% on Thursday (Oct 30, 2025), mirroring the U.S. Federal Reserve’s latest policy move. This marks HKMA’s second rate cut in 2025, following a similar reduction in September, as the city’s monetary policy remains closely aligned with that of the United States under its currency peg system. The Fed on Wednesday reduced its federal funds rate by 25 basis points to 3.75%–4.00%, aiming to stimulate the economy amid global uncertainty. Given that the Hong Kong dollar is pegged to the U.S. dollar within a range of 7.75–7.85, any policy adjustments by the Fed are automatically reflected in Hong Kong’s interest rate settings through the overnight discount window mechanism.
The Fed Delivers Second Straight Rate Cut, but Powell Tempers Expectations for December
The U.S. Federal Reserve cut its benchmark interest rate by 25 basis points to a range of 3.75%–4.00% on Wednesday (Oct 29, 2025), marking its second consecutive reduction. However, Chair Jerome Powell’s cautious remarks about the possibility of another cut in December sparked volatility across financial markets. The 10–2 FOMC vote reflected a divided stance — with Governor Stephen Miran urging for a deeper 50 bps cut, while Kansas City Fed President Jeffrey Schmid opposed any easing at all. Alongside the rate decision, the Fed announced it would end quantitative tightening (QT) starting December 1. Despite market hopes for continued easing, Powell emphasized that a December rate cut was “far from a foregone conclusion,” citing growing disagreement among the 19 Fed officials and limited economic data amid a temporary government data collection freeze. The latest FedWatch data shows the probability of a December cut falling to 67% from 90%. Powell noted that while inflation remains elevated and job growth is slowing, the economy continues to expand at a moderate pace. The Fed’s cautious tone underscores rising internal divisions and growing uncertainty over the future path of U.S. monetary policy.