India’s trade deficit hit $32.15 billion in September, up from $26.49 billion. This increase shows a growing gap between the country’s exports and imports. This update comes as market analyses indicate that other assets, such as silver, gold, and cryptocurrencies, are also affected by global tensions. Ongoing tensions between the US and China are particularly impacting various sectors worldwide.

Market Insights From FXStreet Experts

FXStreet experts offer valuable insights into market trends. Gold prices remain stable around $4,200 per troy ounce, thanks to political uncertainties. However, Bitcoin struggles to break the $112,500 mark due to ongoing global economic challenges. Despite an improved global growth forecast from the International Monetary Fund, growth is still slow. There is focus on whether major cryptocurrencies can continue to recover as they face technical resistance. Investing in global markets carries significant risk, so doing thorough individual research is crucial. FXStreet stresses that information about markets and instruments is for informational purposes only and shouldn’t be seen as direct investment advice. With gold steady around $4,200 per ounce, we see it as a key safe-haven asset due to the US government shutdown and trade concerns. This environment favors using derivatives for long positions. We suggest buying call options on major gold ETFs or utilizing futures contracts to benefit from this safe-haven trend in the coming weeks.

India’s Trade Deficit And Currency Impact

India’s trade deficit for September has grown to $32.15 billion, indicating strong pressure on the Indian Rupee. This situation echoes previous emerging market crises, such as the currency volatility in 2013, when widening deficits led to sharp declines. We advise purchasing USD/INR call options to anticipate further weakness in the Rupee. The US Dollar is currently weakening due to the government shutdown and expectations of the Federal Reserve easing, but this trend may not hold. The Cboe Volatility Index (VIX) has spiked over 15% in the last month, now trading above 22, indicating that the markets are preparing for a significant move. For GBP/USD, which is trading in a narrow range, employing a straddle could be a smart strategy to capitalize on a potential breakout stemming from this uncertainty. Silver displays strong momentum as it nears the crucial resistance level of $53.77. The gold-to-silver ratio is around 79, higher than the historical average, suggesting that silver may be undervalued compared to gold. We see call spreads as an affordable strategy to position for a possible breakout and a tightening of this ratio. Create your live VT Markets account and start trading now.

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