Inflation Pops, Rate Cut Bets Drop — And Gold Takes a Breather

Author

FX Rocket Profits
October 22, 2025

In partnership with

CPI Surprise, Gold’s Dip & Risk Sentiment Shifts

Markets pivoted midweek as Canada’s stronger-than-expected CPI data cast doubt on a Bank of Canada rate cut, sending CAD higher and reigniting inflation concerns. Traders recalibrated their expectations, with rate-sensitive assets adjusting quickly.

Meanwhile, gold dipped below $4,200 for the first time in weeks, driven by profit-taking and a modest rebound in risk appetite. As Babypips explains, gold’s recent surge has been fueled by geopolitical tension, central bank buying, and inflation hedging — but even safe havens need a breather.

Equities traded mixed, the dollar held firm, and traders turned cautious ahead of key PMI and earnings data.

The theme? When inflation surprises and safe havens slip, positioning becomes the pivot.

⚡Daily Broad Market Recap – October 21, 2025

  • S&P 500 rose 0.6% on strong earnings; Apple and Tesla led gains.

  • Gold dipped 1.2% to $4,198; oil climbed 0.9% to $59.

  • USD traded mixed; Bitcoin held near $111,000.

🔥Canada’s Strong September CPI Casts Doubt on BoC Rate Cut

  • CPI rose 3.8% y/y, above expectations.

  • Core inflation remained sticky, fueling hawkish speculation.

  • CAD strengthened as traders priced out near-term easing.

📊Explainer: Why Gold Dipped Despite Market Uncertainty

  • Profit-taking and easing risk-off flows triggered a pullback.

  • Gold remains supported by central bank demand and inflation hedging.

  • Traders eye technical levels and macro catalysts for next move.

This issue blends inflation surprises with safe-haven recalibration. As Canada’s CPI shakes rate cut bets and gold takes a breather, traders are reminded that even defensive trades need timing — and that macro momentum never sleeps.

Happy Trading!

Crypto’s Most Influential Event

This May 5-7 in 2026, Consensus will bring the largest crypto conference in the Americas to Miami’s electric epicenter of finance, technology, and culture.

Celebrated as ‘The Super Bowl of Blockchain’, Consensus Miami will gather 20,000 industry leaders, investors, and executives from across finance, Web3, and AI for three days of market-moving intel, meaningful connections, and accelerated business growth.

Ready to invest in what’s next? Consensus is your best bet to unlock the future, get deals done, and party with purpose. You can’t afford to miss it.