The United States Energy Information Administration reported a drop in crude oil stocks by 3.029 million barrels for early August. This was much larger than the expected reduction of 1.1 million barrels, indicating stronger demand than anticipated. In the foreign exchange market, the AUD/USD rose above 0.6500. This increase came as the US dollar weakened and trade discussions remained uncertain. At the same time, the EUR/USD climbed over 1.1600, as traders reacted to the falling US dollar and changes in central bank policies.

Gold Market Trends

Gold prices fell below $3,360 per troy ounce, ending a four-day rise. This decline reflects a shift toward riskier assets amid changing market sentiment, drawing attention to upcoming comments from Federal Reserve officials. Ripple (XRP) prices stayed above $2.95 despite market instability. However, weak support and resistance levels indicate that the price may drop further. Ongoing trade policy changes are adding to economic uncertainties, with a slowdown in expected growth. For Forex traders, different brokers provide opportunities featuring low spreads and high leverage that cater to both beginners and experienced traders around the world. These services enable trading major currency pairs while addressing the unique needs of various users. The significant drop in crude oil inventories suggests strong demand. With OPEC+ maintaining steady production levels, this imbalance could push prices up. It may be wise to consider buying call options on WTI futures expiring in the next couple of months to benefit from this potential increase.

US Dollar Impact on Forex

The decline of the US dollar is the key news in Forex, boosting both the AUD and EUR. Recent inflation data for July 2025 showed a softer-than-expected rate of 2.8%, making it less likely that the Federal Reserve will raise interest rates soon. This situation supports taking long positions in EUR/USD or AUD/USD futures. Gold’s drop below $3,360 is unusual given the falling dollar, suggesting traders are currently favoring riskier assets like stocks. The S&P 500 has recently reached new highs. Caution is necessary with gold as the market awaits Federal Reserve comments. Trading options might be a better approach to navigate expected volatility rather than committing to a specific direction. Despite the market’s optimism, signs of weakness are present, such as Ripple’s price instability and concern over an economic slowdown. Just last quarter, GDP growth for 2025 was revised down, which contrasts with the current “risk-on” sentiment. To safeguard our gains, buying put options on major stock indexes could serve as insurance against a potential market correction. Create your live VT Markets account and start trading now.

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