**Gold Prices Rise** The NEVI Manufacturing PMI for the Netherlands increased to 53.7 in September, up from 51.9 in August. This indicates growth in the manufacturing sector. After the Eurozone inflation data was released, the Euro traded close to 1.1750, while the US Dollar weakened due to a government shutdown. The GBP/USD pair climbed above 1.3450, driven by concerns about US fiscal issues. Gold prices continued to rise, approaching the $3,900 mark due to geopolitical tensions and the US government shutdown. Attention is on US employment figures, with the ADP Employment Change report expected to shed light on job growth. The US government has shut down for the first time in six years because lawmakers couldn’t pass a funding bill. If funding issues continue, there may be delays in releasing US economic data. Due to the US government shutdown, the main strategy in the coming weeks is to prepare for ongoing dollar weakness. The shutdown is causing uncertainty, pushing investors to safer assets and other major currencies. This creates clear opportunities against the dollar. **Positive Netherlands Manufacturing PMI** The Netherlands Manufacturing PMI’s rise to 53.7 offers a strong case for favoring the Euro over other currencies. This expansion indicator strengthens the EUR/USD pair, which is already benefiting from the dollar’s political challenges. We should think about buying near-term call options on EUR/USD to take advantage of a possible move toward the 1.1800 level. Gold’s rise towards $3,900 is largely due to safe-haven demand spurred by the shutdown, a trend we observed during previous geopolitical tensions in 2024. As long as the deadlock in Washington continues, traders should see any minor dips in gold prices as an opportunity to buy. The trend is clearly upward, and futures contracts provide a straightforward way to capitalize on this. We should brace for increased volatility as the length of the shutdown is unknown. Reflecting on the 35-day shutdown from 2018-2019, we recall that critical data from agencies like the Bureau of Labor Statistics was delayed, leaving the Federal Reserve and markets without key information. This lack of visibility on vital reports, such as jobs and inflation—which recently showed core CPI at a stubborn 3.4%—will likely keep markets anxious. This situation makes owning options appealing due to the potential for sharp market movements once funding is resolved. Until then, we can take advantage of the dollar’s weakness by remaining long on pairs like GBP/USD, which has already surpassed the 1.3450 mark. Keep in mind that these trends can change quickly, so using derivatives with defined risk is a smart strategy. Create your live VT Markets account and start trading now.

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