Argentina’s trade balance for December reached $1,892 million, surpassing predictions of $1,372 million. This figure adds to ongoing economic discussions. In the currency market, Silver (XAG/USD) holds steady near $95.00 due to heightened safe-haven demand. Similarly, Gold (XAU/USD) is trading above $4,750, driven by tensions between the U.S. and Europe.

Tariff Announcements Affect Currencies

The USD/CAD has risen above 1.3800 in response to tariff announcements. Meanwhile, EUR/USD has increased towards 1.1725 as tariff threats weaken the dollar. In the world of cryptocurrency, Ethereum has fallen below $3,000 due to worries about address poisoning. Bitcoin, Ethereum, and XRP are still correcting as geopolitical tensions reduce risk appetite in the market. A review of top brokers for 2026 offers insights into Forex and CFD trading. It highlights brokers with low spreads and high leverage, focusing on key regions like Mena and Latam. FXStreet points out the risks of investing in open markets. It clarifies that the information given is not a recommendation to buy or sell and advises conducting thorough research before investing. The site also disclaims responsibility for any investment losses or information inaccuracies.

Surge in Gold Indicates Flight to Safety

Gold’s rise past $4,750 an ounce shows a clear move towards safety not seen since the market turmoil of 2025. The U.S.-Europe tariff situation is causing increased market volatility, with the VIX index recently rising above 28, a 50% increase this month. We suggest derivative traders consider buying call options on gold and silver to take advantage of this fear-driven momentum. The U.S. dollar is losing strength as tariff threats diminish its attractiveness. We expect the EUR/USD to challenge the 1.1800 resistance level, which it hasn’t surpassed since the European Central Bank’s hawkish stance last year. Buying puts on the Dollar Index (DXY) or calls on the EUR/USD is a direct strategy for this trend. We’ve observed capital flowing away from risk-sensitive assets, with the New Zealand dollar weakening around 0.5825. This trend resembles patterns from 2025 when concerns about a global slowdown caused the S&P 500 to correct. Traders should consider purchasing put options on the AUD/USD and NZD/USD, as these currencies are vulnerable to changes in global trade. Cross-asset volatility remains a key theme for trading. The increasing geopolitical risk premium indicates that unexpected market swings may continue into the first quarter. We believe taking long positions on volatility, through futures or options on the VIX, can provide a solid hedge against unpredictable geopolitical developments. Create your live VT Markets account and start trading now.

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