**Gold Price Surge** Gold prices have risen significantly, approaching $4,200 per troy ounce. This increase is largely due to speculation about a possible rate cut by the Federal Reserve. In contrast, the cryptocurrency market is quiet, struggling after a flash crash that wiped out $19 billion in assets. Bitcoin, Ethereum, and XRP are having a tough time recovering. Looking at upcoming market events, several U.S. data reports could shape expectations for the Federal Reserve. Key reports to watch include ISM PMIs and PCE inflation data. In addition, Eurozone CPI and Canadian job updates are on the radar. Ripple is trading in a narrow range, with support at $2.15 and resistance at $2.30, reflecting a balancing act in market forces. As of November 28, 2025, the rebound in Canadian GDP is notable. The economy shifted from a -0.4% contraction to 0.6% growth in the third quarter, significantly surpassing expectations. This growth boosts the Canadian dollar against the Euro, which is facing its own mixed economic data. **The Immediate Outlook** The immediate trend favors the Canadian dollar but with caution, as domestic demand seems weak. While the headline growth number is strong, the underlying foundation may be shaky, so any currency rally could be fragile. Traders might consider buying call options on the CAD to capture potential gains while limiting risk if sentiment changes. This strong data from Canada creates a clear policy divergence with the United States, where markets are anticipating a Federal Reserve rate cut next month. Facing unexpected growth, the Bank of Canada has little reason to lower its rates, having kept its key interest rate at 5.0% for several meetings to address ongoing inflation pressures, which the new GDP figures only reinforce. A similar situation occurred during 2017-2018 when the Bank of Canada’s firm stance relative to other central banks made the loonie stronger. This history suggests that traders should prepare for a widening spread between Canadian and U.S. bond yields, which would further support the CAD against the USD in the coming weeks. Expectations of a dovish Fed are also contributing to gold’s rise towards $4,200 an ounce. A Fed rate cut typically weakens the dollar and lowers real yields, making gold, which doesn’t yield interest, more appealing. Last month, the U.S. Personal Consumption Expenditures (PCE) Price Index, which the Fed uses as a key inflation measure, was at 2.9%. This represents a cooling trend from previous highs but remains above the Fed’s target, marking any potential cut as a bold move. In addition, the broader market remains cautious. The British pound is weak, and cryptocurrency markets are still recovering from low retail activity following the October flash crash. Traders should focus on distinct divergence plays, particularly between Canada and the U.S. This isn’t the time for broad risk-taking but rather for focused strategies based on differing central bank directions. Create your live VT Markets account and start trading now.

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