Gold market and central banks: Russia, Kazakhstan sell as Poland, China buy

Markets slide as US jobless claims hit three month low – Bitcoin drops to $81K with $600M outflows Global markets entered Friday with a sharp shift in tone as fresh U.S. labor data, renewed tech-sector weakness, elevated oil prices, and ongoing crypto liquidations combined to create a broad risk‑off environment. The past 24 hours have been defined by one theme: the macro is tightening again, and every asset class is reacting. The U.S. labor market delivered the first shock.

South Korea's KOSPI index dropped 3.5% to 5,533.77 on October 22, as the Bank of Korea held interest rates steady but left the door open for future hikes. Samsung Electronics and SK Hynix, major semiconductor stocks, fell 4.03% and 5.80% respectively, amid concerns over AI profitability and Meta's financial results. The decline was also influenced by geopolitical risks and reduced corporate buying.

The KOSPI index fell 4% today, driven by profit-taking in semiconductor giants Samsung Electronics (down 4-5%) and SK hynix (down 4-5%), despite strong AI earnings. Meta's earnings report and Bank of Korea's rate freeze also pressured the market. Foreign and institutional investors turned to net selling.

The Bank of Korea (BOK) upgraded its growth forecasts, citing strong semiconductor demand. It expects growth to exceed 3.3% this year and 2.9% next year, driven by record results from semiconductor companies like Samsung Electronics. Inflation is projected to stay above the 2% target. The BOK also noted strong semiconductor exports contributing to a high current account surplus.

JPMorgan Chase CEO Jamie Dimon warned of five economic threats to the U.S. economy, including fiscal deficits, inflation, and geopolitical risks, in the company's quarterly earnings release. The bank missed profit expectations. Inflation data showed higher-than-expected increases, raising the possibility of further Fed rate hikes. The U.S. federal deficit reached $2 trillion in fiscal year 2026, driven by rising debt servicing costs.

Restaurant prices rose 3.5% YoY in September, outpacing grocery price increases of 1.8%, per the Bureau of Labor Statistics. McDonald's (MCD), Yum Brands (YUM), and Domino's Pizza (DPZ) face affordability challenges as wages lag inflation, impacting sector growth. McDonald's has acknowledged the issue and announced an $8.5B plan to address it.