On September 1, 2025, North American markets saw little activity due to the US/Canadian holiday. WTI crude oil rose by 68 cents to $64.61, and S&P 500 futures went up by 0.2%. Gold prices surged $30, reaching $3476. In the currency market, the British pound led, while the Japanese yen lagged behind. A US court ruling that blocked Trump’s tariffs had little effect, as market participants seemed cautious and adopted a ‘wait and see’ approach. The New Zealand dollar made some gains, and the euro continued its steady upward trend.

Precious Metals Surge

Precious metals were the standout performers, with silver hitting a 14-year high. Gold has increased for five straight days, now just $25 shy of a record high of $3501 set earlier this year. Political unrest in the UK and France didn’t impact the euro’s upward movement. Market news was sparse, partly due to the holiday. Trump’s tweets about Covid vaccines and US-India trade didn’t influence the markets. However, there is speculation about his health, as he has been less visible recently. The rise in precious metals is the most significant takeaway from today’s quiet trading. With gold at $3476, buyers can look at call options on gold and silver ETFs to take advantage of this momentum, especially since last week’s CPI data showed core inflation steady at 4.1%. Silver’s climb to a 14-year high is particularly exciting, approaching levels last seen during the 2011 commodity boom. Strong industrial demand backs this, with reports showing a 15% year-over-year increase in silver consumption in the green energy sector. Traders might want to consider bullish positions through futures contracts to take advantage of this strength.

Market Volatility Expected

The current calm in the equity market is likely temporary due to the court ruling on tariffs. A similar pattern occurred during the trade disputes of the late 2010s, where initial court decisions sparked brief but sharp volatility. Given this uncertainty, buying straddles or strangles on major index ETFs can be a smart way to profit from potential market movement. Implied volatility readings suggest a significant market move is coming. The VIX index is currently at a relatively low 15, but options pricing indicates that traders anticipate it could rise to 25 in the next 45 days. Purchasing VIX call options offers a cost-effective way to hedge against potential political or legal surprises. In the foreign exchange market, the difference between British and Japanese monetary policies presents a clear opportunity. The Bank of England’s recent hawkish stance supports the pound, while the Bank of Japan maintains its ultra-loose policy. Long GBP/JPY options or futures could be a good way to benefit from this widening policy gap. Create your live VT Markets account and start trading now.

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