Australia’s National Australia Bank’s business conditions index rose to 9 in December, up from 7. This shows that the business environment in the country is improving. The USD/INR pair is trading near record highs as traders remain cautious ahead of the Federal Reserve’s policy meeting. Meanwhile, silver prices, XAG/USD, have stabilized around 109.00 after a recent dip, and EUR/JPY has moved back above 183.50 due to financial concerns in Japan.

Gold Prices And Market Trends

Gold prices are near their peak, supported by a weak USD and demand for safe investments before the Fed makes its decisions. The Philippines is experiencing an uptick in gold prices, as noted by FXStreet. Axie Infinity’s cryptocurrency, AXS, rose 3% on Tuesday, adding to a 21% gain from Monday. This increase follows the announcement of a new token, bAXS, which has sparked retail interest and pushed AXS futures’ Open Interest to a three-year high. Brokers are offering various options for trading in 2026, covering forex trading, low-spread options, and platforms for specific currency pairs. However, all trading carries market risks, and there are no guaranteed outcomes. The US Dollar is struggling near its lowest levels since September 2025. This situation is largely due to uncertainty around US trade policy. Long-term pressures, like the US national debt, which surpassed $34 trillion in early 2024, are also impacting the currency.

Investment Strategies And Market Dynamics

Gold stands out as a strong performer, nearing its all-time high due to the weak dollar and safe-haven demand. We should consider buying call options to take advantage of potential gains before the Federal Reserve’s upcoming decision. With prices already high, using bull call spreads can be a more efficient way to maintain a long position while managing risk. The British Pound shows signs of continued strength, especially with solid UK economic data making Bank of England rate cuts less likely. The BoE has faced persistent inflation throughout 2023 and 2024, so their hesitation to lower rates now makes sense. We can explore using futures contracts to maintain a long position in the GBP/USD pair, aiming for gains above the 1.3685 level. Australia is also showing positive trends, with improved business conditions in December 2025. This, along with strong prices for key exports like iron ore, supports a bullish outlook for the Australian Dollar. Trading long AUD/USD call options could be a strong strategy to leverage this fundamental strength against a generally weak US Dollar. Despite these encouraging trends, we need to be aware of potential volatility, especially with central bank decisions ahead. The rapid market shifts during the 2022 rate hikes serve as a reminder. Therefore, purchasing cheap out-of-the-money put options on major indices could be a smart way to hedge our portfolio against unexpected shocks while working on our directional trades. Create your live VT Markets account and start trading now.

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