**Gold Prices Reflect Renewed Appeal** The Bank of England has cut interest rates by 25 basis points, lowering them to 4%. This change addresses ongoing inflation concerns, which are still above target levels. A list of the best brokers for trading EUR/USD is now available. This list highlights brokers with competitive spreads and efficient execution, helping both beginners and experts find the right platforms for trading in the foreign exchange market in 2025. As of August 9, 2025, higher-than-expected inflation in China may boost global demand for commodities. This could lead to increases in the currencies of commodity-exporting countries, like the Australian dollar. Derivative traders might explore strategies that capitalize on rising prices of industrial metals over the next quarter. **Central Bank Policy Divergence** The Bank of England’s decision to cut rates to 4% amid high inflation creates a notable difference in policy compared to other central banks. This divergence is reminiscent of 2024, when central banks moved at different paces, creating significant trends in currency values. This makes options on the EUR/GBP pair particularly interesting, as the European Central Bank has signaled it will keep rates steady for now. Despite the rate cut, the surprising strength of the GBP/USD near 1.3450 likely comes from weakness in the U.S. dollar. We should closely monitor the upcoming U.S. jobs report and inflation data. A weak report could confirm this trend and push the GBP/USD higher, making call options on the pound a viable short-term strategy. Gold is holding steady at around $3,400 an ounce, highlighting its renewed appeal as a hedge against inflation. Open interest in gold futures has increased by over 5% in the past month, indicating new investment in the metal. We believe that buying gold on dips remains a smart strategy, especially as the BoE’s rate cut reduces the attractiveness of holding cash. The surge in Bitcoin to nearly $118,000, along with gains in other digital assets, reflects a strong appetite for risk. This positive sentiment is supported by the S&P 500 reaching new highs last week. For derivative traders, this suggests that volatility indexes are likely to remain low, favoring strategies that benefit from stable or rising asset prices. Create your live VT Markets account and start trading now.

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