In September, Canada’s Bank of Canada announced that the Consumer Price Index Core (MoM) rose to 0.2%, up from 0%. This change shows how consumer prices are moving and helps track inflation by leaving out fluctuating items like food and energy. Gold prices fell, hitting multi-day lows close to $4,120 per troy ounce. This drop was due to a stronger US Dollar and less excitement around the US-China trade situation. Similarly, Bitcoin, Ethereum, and XRP also decreased as global markets face ongoing economic challenges and geopolitical issues, worsened by the extended US government shutdown.

Shifts In The Economic Landscape

Although there’s some relief because the global economy has performed better than expected in light of US tariffs, there are troubling changes beneath the surface. These shifts could have long-lasting effects that are still unclear. Over the last five years, Bitcoin treasuries have dropped by 99%, and Bitcoin is now often viewed as a reserve asset. This trend is visible in both company financials and government holdings, indicating changes in how businesses own assets. Now that Canada’s core inflation has risen to 0.2% last month, we might see different approaches in central bank policies. The Bank of Canada could feel pressure to maintain its stance, while the US Federal Reserve is focused on the ongoing government shutdown. Traders should consider options on the USD/CAD pair to take advantage of any unexpected policy shifts in the coming weeks. Gold’s recent dip toward $4,100 seems to be linked to a stronger US Dollar, which has become a temporary safe haven during the shutdown. After reaching over $4,300 due to tensions in the South China Sea earlier this year, this pullback appears to be profit-taking. We suggest that buying put options on major gold ETFs offers a defined-risk way to benefit from a further drop toward the psychological $4,000 mark.

Anxious Relief In The Economy

There’s a mix of anxious relief as the global economy has managed shocks better than we thought it would back in spring. However, with the US government shutdown now in its fourth week and Q4 GDP predictions being lowered to below 0.5%, this sense of calm feels shaky. The VIX index has dropped to 19, making call options on volatility a cheap way to hedge against the significant changes mentioned. The crypto markets are in a risk-off mode, with Bitcoin and Ethereum both falling along with stocks. The decrease in institutional investments is a serious concern; data shows that inflows to corporate treasuries fell from over $2 billion a month in 2024 to just $20 million in September 2025. This signals that derivative traders should be careful, using futures to protect existing positions or buying puts to bet on dipping below key support levels. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now