Gold prices are falling as investors take profits and the demand for the US Dollar rises. Ongoing geopolitical tensions are also impacting both gold and currency trading.

Expanding Into Digital Assets

T. Rowe Price is launching a new actively managed Exchange Traded Fund (ETF) that will focus on various digital currencies. This move comes as regulations are slowing down due to the US government shutdown. The Pi Network token is holding steady above $0.2000 and is approaching an important technical pattern on the chart. Traders are watching on-chain data closely for any signs of a breakout. In 2025, we’re compiling a list of the best brokers for different trading needs. Key factors include low spreads, regulation, leverage, and platform features. This information aims to help traders make better decisions. The US Dollar Index is climbing towards 99.00, putting pressure on pairs like EUR/USD, which is struggling around 1.1600. In late 2024, a similar dollar strength led to a sharp market drop, so caution is advised. This scenario suggests considering call options on the dollar or put options on the Euro in the coming weeks.

Impact Of The US Government Shutdown

The current US government shutdown is creating a data blackout, leading to uncertainty in the market. During the 2018-2019 shutdown, volatility (measured by the VIX) spiked nearly 15% over three weeks, as traders had limited information. This situation favors strategies such as long straddles on major indices, which profit from big price swings once inflation data is finally released. Recent US sanctions on Russian energy companies Rosneft and Lukoil represent a major geopolitical event likely to affect oil prices. Brent crude futures jumped over 4% to nearly $95 a barrel in just one day, highlighting immediate supply concerns. Derivative traders should watch for inflationary effects and might consider buying call options on oil futures to protect against rising prices. Gold is experiencing a tug-of-war, remaining above $4,000 due to safe-haven demand from geopolitical risks but facing pressure from a strong US dollar. This indicates that market fears are currently outweighing the usual inverse relationship between gold and the dollar. A covered call strategy could be beneficial, allowing traders to earn premium income while retaining the asset for potential gains from major risk events. While Dutch consumer confidence has shown a slight improvement to -27, it is still deeply negative and less significant compared to the overall global risk-off sentiment. The European Central Bank’s outlook from September 2025 already predicted nearly zero GDP growth for the fourth quarter, making it unlikely that this single data point will change the Euro’s weakness against the dollar. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now