**Gold Prices Rise** The International Monetary Fund has slightly increased its global growth forecast. However, it cautioned that the growth rate is still underestimated due to significant uncertainties. Lido DAO displayed some recovery with its V3 testnet launch, regaining support above $1.00. This indicates positive technological advancements in its protocol. Canadian wholesale sales for August were better than expected, contracting 1.2% compared to the forecasted -1.3%. This is important alongside last month’s data showing Canada’s Q2 2025 GDP grew by 0.4%, allowing it to avoid the technical recession seen in the U.S. This hints at potential strength for the Canadian dollar against the U.S. dollar, especially through buying put options on the USD/CAD pair. The ongoing story is the weak U.S. dollar, affected by ongoing trade tensions and signs of future Federal Reserve rate cuts. Fed fund futures currently show an 85% chance of a 25-basis-point rate cut at the November 2025 FOMC meeting, particularly after the U.S. Manufacturing PMI dropped to 48.9. In this situation, buying volatility options on major U.S. indices might be a smart strategy against further uncertainty. Gold is benefiting from this environment, holding steady at around $4,200 per ounce due to the weak dollar and geopolitical risks. Central banks have reportedly increased their gold purchases in the third quarter of 2025, reaching the highest level since 2022. This supports gold prices. Traders should consider call options on gold futures or related ETFs to gain potential upside if U.S. fiscal issues worsen. **Global Central Bank Policy Divergence** There is also a noticeable divergence in global central bank policies. The Reserve Bank of Australia is warning about inflation risks while the Fed appears more accommodating. Australia’s latest quarterly CPI is at 3.8%, a sharp contrast to the disinflationary trend in the U.S. This situation supports a more hawkish stance from the RBA and makes currency pairs like AUD/USD appealing for strategies aimed at profiting from a rising Australian dollar. Create your live VT Markets account and start trading now.

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