Dollar Hits Five-Week Low, Gold and Silver Surge, Bitcoin Rebounds

Market Overview

On Monday, U.S. markets were closed for Labor Day, leaving equity futures to post modest gains while other assets experienced significant moves.

The U.S. Dollar Index extended its weakness, dropping to a five-week low. Precious metals took the spotlight with a stellar performance: gold jumped more than 1% intraday, with futures reaching fresh record highs, while silver staged a “wild” rally, surging over 2% to hit a 14-year high.

In the crypto market, Bitcoin briefly dipped below $108,000 to a two-month low before rebounding by more than $2,000. Ethereum also fell nearly 4% during the session. Oil prices advanced, with Brent crude climbing more than 1% intraday to settle at a one-week high.

Hot Topics Outlook

● Silver Breaks $40

Silver prices broke above the $40 mark for the first time in 14 years, up more than 40% year-to-date, fueled by growing expectations of Fed rate cuts. The potential inclusion of silver on the U.S. critical minerals list has further lifted sentiment, with Citi forecasting a rally to $43/oz. Analysts highlight that rising bets on a rate cut at this month‘s FOMC meeting remain the primary driver, as lower borrowing costs typically benefit non-yielding assets like precious metals. Friday’s U.S. jobs report is expected to further reinforce dovish expectations.

● France Trapped in a “Vicious Cycle”

France is facing an unprecedented political and fiscal crisis. Prime Minister Bayrou is bracing for a confidence vote; failure to pass would mark the fourth government collapse in just 18 months. With mounting debt and soaring borrowing costs, investors fear France could follow Italy‘s path as the eurozone’s next source of instability. A fragmented political landscape has stalled fiscal reform, leaving deficits and debt levels to worsen. Deep divisions make it difficult to trim welfare spending or raise taxes, heightening uncertainty over Frances policy direction and economic outlook.

Key Focus

21:45 GMT+8 – U.S. S&P Global Manufacturing PMI Final (August)

22:00 GMT+8 – U.S. ISM Manufacturing PMI (August); U.S. Construction Spending MoM (July)