The Baker Hughes US oil rig count has risen from 411 to 412, showing more activity in the oil industry. The EUR/USD has reached two-day highs near 1.1820 due to a weaker US Dollar. The GBP/USD has also gained, going above the 1.3600 mark, fueled by profit-taking in the Greenback.

Gold Breaks New Barrier

Gold has crossed $4,900 per troy ounce and is now eyeing the $5,000 mark, benefiting from a shift in market sentiment. Cryptocurrencies like Bitcoin and Ethereum are bouncing back after a $2.6 billion liquidation, with Ripple surging over 10% to $1.35. The Japanese Yen may go through some changes with an upcoming snap election. Polls indicate that the ruling bloc may win, leading to worries about quick shifts in economic policy. Ripple continues its recovery, driven by recent trends in the crypto market. It has risen over 21% from its intraday low and is now trading above $1.36. FXStreet does not take responsibility for risks in investment decisions and advises thorough individual research. This information should not be taken as financial advice and is intended for informational purposes only.

Crude Oil Production

The slight increase in the U.S. oil rig count to 412 indicates stable production without significant growth. Current data from the Energy Information Administration (EIA) shows that U.S. crude output is nearly at record highs, exceeding 13.3 million barrels per day. Traders should prepare for steady price action in WTI crude. Strategies like selling covered calls on oil futures or buying straddles to take advantage of potential volatility may be appealing. A key factor in the market is the rising talk of a possible Federal Reserve rate cut as early as March, which is weakening the U.S. Dollar. Recalling the series of rate hikes of late 2025, this shift in sentiment is causing notable changes in currency markets. Futures markets now suggest there is a greater than 65% chance of a rate cut next month. Options traders might look to buy calls on the Euro and British Pound to benefit from this momentum. The weaker dollar outlook is also boosting gold’s price, pushing it toward the $5,000 per ounce mark. The potential for lower interest rates decreases the opportunity cost of holding gold, which doesn’t earn interest. Reports show that global central banks have continued their aggressive gold purchases into the new year, continuing the trend we saw throughout 2025. Even as investors flock to safe havens like gold, riskier assets like Bitcoin are also making a comeback, rising back above $65,000. This signals that traders think a Fed pivot could uplift all asset classes with cheaper capital. The mixed market signals, where both safe havens and risk assets are gaining, highlight underlying uncertainty, which could be leveraged through volatility-focused options on major indices. Create your live VT Markets account and start trading now.

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