The China House Price Index held steady at -2.2% in October, showing ongoing declines in the housing market. This steady drop in prices reflects the ongoing struggles within real estate, caused by weak demand linked to economic uncertainties and regulatory challenges. Even with government efforts to stabilize this market, the absence of significant price changes suggests these measures are not very effective. In other financial news, the Australian Dollar rose while the US Dollar faced difficulties amid concerns about data releases. Silver prices climbed above $52.50, responding to uncertainties surrounding US data. The Japanese Yen saw a slight increase against the weakening US Dollar. The USD/CHF pair stayed around 0.7920, even as traders lowered their dovish expectations regarding the Federal Reserve.

Gold And Currency Movements

Gold gained, reaching $4,200, boosted by a weak US Dollar and increased demand driven by a risk-averse mood. The EUR/USD remained stable below the mid-1.1600s, waiting for a potential move above the 50-day SMA as the USD softened. Meanwhile, the GBP/USD fell to near 1.3150 after the UK government decided to scrap its tax-raising plans. Cryptocurrencies like Bitcoin, Ethereum, and Ripple are under deeper pressure as market sell-offs continue. With China’s house price index at -2.2%, we see confirmation of a prolonged slump in property that has persisted throughout 2025. This ongoing weakness is also visible in China’s Q3 industrial output, which fell short of expectations, hinting at a continued decline in industrial commodity demand. Derivative traders should be aware that any asset rallies linked to Chinese growth may be weak. The market is quickly moving away from the US Dollar, reflecting growing uncertainty over US economic data. This trend was evident after the last Non-Farm Payroll report on November 7, 2025, which came out disappointing, pushing gold above $4,200 an ounce. This scenario suggests that taking long positions in gold and silver through futures or call options could serve as a hedge against a weakening USD and overall risk-off sentiment.

Risk Management Strategies

The risk-averse atmosphere is also favoring traditional safe-haven currencies like the Japanese Yen and Swiss Franc. The difficulty of the USD/CHF pair to stay above 0.7920 emphasizes this trend, ongoing since global growth concerns emerged in late 2024. We expect traders to continue favoring puts on USD currency pairs against the Yen and Franc. Caution is needed with the Australian Dollar, as its current strength against the US Dollar stems from USD weakness rather than strong fundamentals. The negative news from Chinese housing data poses a significant challenge for the AUD in the medium term. This situation complicates trading the AUD/JPY cross, as it contrasts a weak fundamental story with short-term currency flows. The risk aversion is evident in the drop of more speculative assets like cryptocurrencies. Solana recently fell to a five-month low, and data shows that inflows into crypto ETFs have stalled in early November 2025. This reinforces the notion that capital is shifting towards safety, signaling a classic risk-off environment similar to patterns seen during market uncertainty in 2023. In this climate, derivative strategies should focus on managing downside risk and benefiting from volatility. We believe that buying put options on major equity indices affected by global growth, while simultaneously holding call options on safe-haven assets like gold, offers a balanced approach. This allows for protection against further economic decline while keeping exposure to the flight-to-safety trend. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now