Key Developments in the Market

Global financial markets are currently focused on two major factors.

First, U.S. President Donald Trump has called on the EU to impose a 100% tariff on Russian oil imports to China and India, aiming to increase pressure on Moscow. However, this move risks escalating international trade tensions.

Second, inflation data is in the spotlight: the U.S. is set to release the Producer Price Index (PPI) and Consumer Price Index (CPI) figures. Forecasts suggest that PPI will rise by 0.3% month-over-month, while annual CPI is expected to climb to 2.9%, with core inflation holding steady at 3.1%. If these projections are confirmed, the Federal Reserve will likely proceed with another interest rate cut next week.

In Asia, regional equity markets advanced after China reported a 0.4% year-over-year decline in August inflation, sharper than the expected 0.2% drop. This underscores mounting deflationary pressures in the world’s second-largest economy.

News Events Today

• Core PPI m/m (7:30 PM GMT)

• PPI m/m (7:30 PM GMT)

The U.S. Dollar Index (DXY)

On September 10, 2025, the U.S. Dollar Index (DXY) opened at 97.760 and is currently trading around 97.74, up 0.30% from the previous session. Throughout the day, the index fluctuated within a narrow range of 97.74–97.90, reflecting global investors’ cautious sentiment as they await further signals from the Federal Reserve on the likelihood of additional rate cuts. Fundamentally, the USD still retains short-term stability thanks to its safe-haven status and interest rate differentials, but the medium- to long-term outlook leans bearish. Forecasts suggest DXY could decline about 9% toward 91 within the next 12 months, while Goldman Sachs has warned that demand for dollar-denominated assets will weaken if the USD fails to undergo further downward adjustments.

From a technical perspective, DXY is now approaching a short-term support zone near 97.50, a level that has been tested multiple times in the past two weeks. A decisive break below this level, accompanied by high trading volume, could open the door for a deeper decline toward the next target at 96.80. Conversely, if buying momentum holds, the index may retest the resistance range of 98.20–98.50, a strong barrier formed since late August. Oscillators such as the RSI are hovering around 45, indicating weak trend strength and no confirmation of a sustainable bullish move. Meanwhile, the 20-day moving average (MA20) is sloping downward and has crossed below the 50-day moving average (MA50), reinforcing a bearish medium-term signal. Overall, the technical outlook suggests that downside risks remain dominant, and any short-term USD rebound is likely to be corrective before the broader downtrend resumes.

Gold (XAU/USD)

Gold prices continue to sustain a strong bullish trend, trading around $3,650/oz after setting a new all-time high at $3,674/oz, marking a gain of more than 38% year-to-date in 2025. The primary drivers are expectations that the Federal Reserve will proceed with further rate cuts at its upcoming meeting, combined with escalating geopolitical tensions that are fueling safe-haven demand. On the fundamental side, physical gold purchases from central banks particularly China have also played a significant role in supporting elevated price levels.

From a technical standpoint, gold is moving within a solid upward channel, with the key range identified between $3,600–$3,700. Short-term support levels are seen at $3,560 and deeper at $3,500, both of which have attracted strong buying interest during recent pullbacks. On the upside, critical resistance lies in the $3,630–$3,670 zone; if breached with strong volume, gold could extend its rally toward $3,700, and potentially further to $3,800–$4,000 in the coming year. Technical indicators continue to confirm bullish momentum: RSI remains elevated around 68–70, close to overbought territory but without clear reversal signals; the MA20 remains above the MA50 with a steep upward slope, reinforcing the medium-term uptrend; and MACD maintains a wide positive divergence, highlighting strong buying pressure.

That said, after such a sharp rally, gold may face short-term profit-taking pressure, particularly as it approaches the psychological resistance at $3,700. A technical correction back toward the $3,560–$3,580 zone is entirely possible before the next leg higher. Overall, the dominant outlook remains bullish, but a prudent trading strategy would be to buy on dips toward support levels while placing tight stop-losses below $3,510 to manage downside risks.