South Korea’s industrial output in November fell short of expectations, declining by 1.4% year-on-year instead of the predicted 3% growth. This decline reveals ongoing challenges in the industrial sector. In the financial market, the EUR/USD pair stayed steady above 1.1750 as traders awaited the Federal Open Market Committee (FOMC) minutes. The GBP/USD pair, however, slipped below 1.3500 due to light trading activity after Christmas.

Gold Prices and Market Activity

Gold prices experienced fluctuations, hitting a peak of $4,550 per troy ounce before profit-taking brought it down to $4,300. In the cryptocurrency market, BitMine Immersion raised its Ethereum holdings by 44,463 ETH, totaling 4.11 million ETH. Looking ahead to 2026, advanced countries might see strong economic growth, continuing from 2025. The crypto market in 2025 was volatile, influenced by positive regulatory changes and increased use of AI. For trading in 2025, the top brokers have been identified, catering to different trading preferences. This includes forex brokers, budget-friendly options, and those specializing in gold, providing thorough details on the advantages, disadvantages, and unique features for each region. Investors should thoroughly research before making decisions, as there are risks of possible losses. All information given is for informational purposes only and not investment advice.

Considering Economic Indicators for 2026

The significant drop in South Korea’s industrial output, which fell 1.4% year-on-year instead of the expected 3% increase, serves as a warning for global growth. This disappointing figure follows the China Caixin Manufacturing PMI, which dropped back into contraction territory at 49.8. This suggests it may be wise to consider buying put options on indices closely linked to Asian manufacturing to protect against further weakness as we enter the first quarter of 2026. Markets are currently pricing in more rate cuts from the US Federal Reserve for 2026, particularly following the earlier cut this month. The CME FedWatch tool now indicates over a 70% chance of another rate reduction by the March 2026 meeting. This sentiment has grown as core inflation has stayed below 3% for the last six months. Strategies like buying call options on the EUR/USD or selling USD futures could be effective ways to position for further dollar weakness. Gold’s surge to above $4,500 reflects more than just a weak dollar; it indicates ongoing demand for safe-haven assets. This trend is backed by central bank activity, as data from late 2025 showed they were record buyers of gold, a trend likely to continue. Given the volatility at these historic prices, we should consider using bull call spreads on gold futures to maximize potential gains while managing our risk. Institutional interest in the crypto market remains robust, with large treasury firms continuing to acquire Ethereum. This follows the trend since the approval of spot ETH ETFs in late 2024, with on-chain data showing a 15% rise in large wallet holders during the second half of 2025. For traders, this makes purchasing long-dated call options on ETH an attractive strategy to capitalize on this ongoing growth into 2026. Create your live VT Markets account and start trading now.

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