The U.S. Energy Information Administration reported a minor change in natural gas storage, moving from -167 billion cubic feet to -166 billion cubic feet in December. This slight adjustment shows that natural gas storage levels are stable. In market news, the EUR/USD pair is steady below 1.1800, with low volatility as we approach the New Year. On the other hand, GBP/USD has fallen below 1.3500 due to quiet trading after Christmas.

Gold Market Trends

Spot gold prices are above $4,300 after hitting a peak of $4,550 per troy ounce, thanks to a weaker U.S. Dollar. Although there was some profit-taking during U.S. trading hours, buyers returned, keeping prices around $4,300. Looking ahead to 2026, the economic outlook is promising, building on strong performance in 2025. Positive factors in the crypto market include new regulations in the U.S., the rise of AI, and the tokenization of real-world assets. Investors should thoroughly research before making decisions, as FXStreet warns about the risks of trading in Open Markets. The information here is not a recommendation to buy or sell any assets. The latest natural gas storage report shows a draw of 166 billion cubic feet, indicating continued strong demand. This draw is significantly larger than the five-year average of about 125 Bcf for this time of year, according to recent EIA historical data. With forecasts predicting a blast of arctic air across the Midwest and Northeast in early January 2026, traders may lean towards bullish positions on February futures contracts.

Federal Reserve and Market Reactions

Equity markets are pausing during the thin holiday trading, focusing on the upcoming Federal Reserve minutes. Last week’s data showed the Core PCE Price Index, the Fed’s preferred inflation measure, holding steady at 2.9%, which is above their target. This uncertainty may lead traders to hedge by buying puts on the SPY or VIX calls to guard against a hawkish tone from the Fed. Gold has recently pulled back from its all-time high of $4,550, a level supported by central bank buying throughout 2025. Data from Q3 2025 revealed that global central banks added 337 tonnes to their reserves, marking the strongest first three quarters of any year on record. This demand suggests that the dip to $4,300 may be a buying opportunity, prompting traders to consider call options on GLD for a potential return to those highs. Currency markets show indecision, with the Dollar Index just above 101.50 ahead of the Fed’s announcement. Implied volatility in major pairs like EUR/USD and GBP/USD has dropped to multi-week lows, but this may change. A clear message from the Fed could lead to a significant market move, and traders might use options strategies like straddles to profit from any volatility, regardless of the direction. Create your live VT Markets account and start trading now.

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