In November, the United States reported a capacity utilization rate of 76%, which is slightly above the expected 75.9%. This indicates that industrial efficiency is improving. The US economy grew at an annual rate of 4.3% in Q3, exceeding analysts’ forecasts of 3.3%. This growth could explain the small increase in the capacity utilization rate.

Gold Prices Surge

Gold prices jumped to $4,497, boosted by a weak US dollar and low holiday trading volumes. However, gains eased after strong US GDP data was released. Bitcoin is trading above the $87,000 support level, but the broader cryptocurrency market remains under pressure. Altcoins like Ethereum and Ripple are seeing price drops amid ongoing sell-offs. This information is for informational purposes only and should not be seen as trading advice. Readers are encouraged to do their own research before making any financial decisions. All investments carry risks, including potential losses and emotional stress. With high capacity utilization and strong GDP growth of 4.3% in Q3, the US economy looks strong. Still, the US dollar is weakening, which suggests that our attention is more on the Federal Reserve’s future decisions than on past data. This creates clear opportunities for derivative traders.

Commodities and Forex Opportunities

The dollar’s weakness is driving a significant rise in commodities, with gold nearing $4,500 and silver exceeding $71. It could be wise to buy call options on precious metals ETFs to take advantage of this momentum, as it’s likely to continue into the new year. This pattern reflects the price movements seen during 2020-2021, when easy monetary policies and a weak dollar boosted hard assets. In the foreign exchange market, the strength of the Canadian dollar is a direct result of the greenback’s weakness. With Canada’s central bank showing hopeful signs, there may be potential in purchasing CAD/USD call options or futures contracts. The thin holiday trading can amplify these moves, making short-dated options a smart choice for significant leverage in upcoming sessions. Although stock indexes show pre-holiday optimism, we should be cautious about these small gains due to low trading volume. The CBOE Volatility Index (VIX) is currently near a yearly low of 12.5, making protective put options on the S&P 500 unusually affordable. Buying some January puts could be a wise precaution against a potential market shift when full trading resumes. The crypto market presents a different picture, with Bitcoin showing signs of weakness despite being above the $87,000 support level. The falling open interest in Bitcoin futures reveals a lack of buying interest, suggesting a bearish or neutral approach might be best. This could involve buying puts or taking short positions on crypto-related assets. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now