Existing home sales in the United States exceeded expectations in December, hitting 4.35 million compared to the forecast of 4.21 million. Gold prices are climbing, reaching close to $4,650 per ounce. This increase is fueled by a weaker US Dollar and decreasing US Treasury yields.

Ethereum Experiences Growth

Ethereum is gaining traction, with US-listed spot ETFs attracting $130 million in net inflows, the highest in nearly a week. The GBP/USD pair is under selling pressure, nearing the 1.3420 level, as markets brace for upcoming UK GDP data releases. Hyperliquid is gaining momentum, trading above $26.00, bolstered by strong on-chain metrics and rising activity in the derivatives market. The article discusses various market movements but advises readers that this information should not be seen as investment advice.

Do Your Research Before Investing

Readers should thoroughly research before making investment choices, considering the risks tied to open market investments. The current market is marked by uncertainty, suggesting increased volatility in the coming weeks. As Jerome Powell’s term ends and the Fed’s independence faces challenges, buying volatility through options like straddles on the S&P 500 could be a strategic move. This approach directly addresses the growing political and monetary risks that are not yet fully factored in. The unexpected strength in housing data complicates the Federal Reserve’s decisions, reflecting the enduring economic strength that persisted through 2025 despite numerous rate hikes. This data supports the view that the fight against inflation is ongoing, which clashes with market expectations for rate cuts. We can consider using derivatives on SOFR futures to make a bet on a prolonged rate hike path that the market isn’t currently anticipating. Rising geopolitical tensions in Iran are pushing up crude oil prices, with WTI reaching its highest point since last October. This mirrors the energy price shock from 2022, which contributed to inflation and prompted central banks to act decisively. Looking at long positions in crude oil futures or purchasing call options could be beneficial to capitalize on potential supply disruptions. Gold’s rise above $4,600 clearly indicates that traders are seeking safety amid dollar weakness and global instability. Historically, Gold thrives in these conditions, as seen during past geopolitical tensions. Buying Gold call spreads is a prudent way to engage in further gains while limiting our maximum risk at these new record highs. Political concerns are significantly impacting the US Dollar, providing a rare but strong influence on currency markets. This opens an opportunity to short the dollar index (DXY) using futures. We can also take a long position on currencies like the British Pound, which has been rising in response. Create your live VT Markets account and start trading now.

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