Gold Rally

Gold has now risen for six days in a row, reaching $5,100. This boost comes as more investors seek safe-haven assets due to global uncertainties. Bitcoin, Ethereum, and Ripple have bounced back slightly after falling over 7%, 14%, and 7% in recent times. Cardano’s price is around $0.34, but it faces more downside risks. This is reflected in declining Open Interest, which shows that fewer people are participating in the market. Although the US government has backed off on tariffs against Europe, tensions across the Atlantic continue. FXStreet provides guides on the best brokers for trading in 2026, looking at factors like low spreads, high leverage, and specialized accounts. Investors should do thorough research before investing, as markets come with risks and uncertainties.

Market Volatility

With the record-high gold rally, now may be a good time to buy call options to benefit from this strong upward trend. Gold’s rise past $5,100 is fueled by ongoing geopolitical worries and a weaker US Dollar. This demand for gold is backed by central banks buying aggressively—especially since 2022. The US Dollar is under continued pressure, signaling a chance to act ahead of the Federal Reserve’s meeting this Wednesday. We may see further dollar weakness, making it wise to buy put options on the US Dollar Index (DXY) or call options on currency pairs like EUR/USD, which is close to a four-year high. Historically, the dollar index has dropped sharply from its 2022 highs, and a dovish stance from the Fed could push it lower. The Japanese Yen is gaining strength due to speculation about Bank of Japan intervention and a more hawkish policy. This opens up strategies like selling USD/JPY futures or buying put options on this pair. The BOJ has hinted at moving away from its very loose policies, similar to the shift we saw in 2024, making tightening likely. The British Pound is also strong, reaching its highest point against the dollar since September 2025 thanks to solid UK economic data. This helps the anti-dollar trend, making long positions in GBP/USD through call options a smart choice. The UK data has repeatedly exceeded expectations throughout 2025. With significant announcements from central banks and ongoing trade tensions, market volatility is expected to remain high. Traders should consider using options to protect their positions or speculate on large price movements. For example, buying straddles on major indices or currency pairs before Wednesday’s Fed announcement could be a wise trading strategy. Additionally, WTI crude oil is holding steady around $61.00 per barrel amid rising supply concerns. In this environment, looking at long positions—possibly through call options on oil futures—would be prudent. Any increase in supply disruptions could lead to a quick price spike from these levels. Create your live VT Markets account and start trading now.

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