Italy’s Producer Price Index rose by 1% in November, bouncing back from a decline of -0.2% in October. Gold hit a record high, surpassing $4,420, and saw a nearly 2% daily increase amid geopolitical tensions and expectations for the Federal Reserve.

Hyperliquid Market Activity

As of Monday, Hyperliquid (HYPE) trades at $25, up 3% from the previous day, even though weekly fees collected are decreasing. Grayscale and leading crypto asset managers believe that Bitcoin could reach new record highs by 2026, driven by growing demand from institutions and digital asset treasuries. The markets analyzed include currency pairs like USD/JPY, which experienced volatility due to the possibility of intervention and a weaker USD. Meanwhile, GBP/USD climbed to around 1.3450 as the USD continued to weaken. Market predictions for 2026 suggest a potential shift that could impact growth, inflation, fiscal policy, and geopolitics.

Best Brokers for Trading

We discussed the best brokers for trading different financial assets, providing insights into costs, leverage, and regional factors. This information is for educational purposes only and comes with a disclaimer about the risks involved in trading. There’s no guarantee about the accuracy or currency of the information, so readers should do their own research. The rise in Italy’s producer prices indicates that inflation might be picking up again in the Eurozone. This is a stark contrast to the US, where Federal Reserve officials are openly talking about rate cuts. We might consider using derivatives, like long EUR/USD call options, to take advantage of this policy divergence, as the European Central Bank may need to keep rates higher for a longer time. A dovish Federal Reserve is weakening the US dollar and leading to a strong rally in precious metals. With Gold surpassing $4,400 and Silver reaching new highs, the bullish momentum is clear. We can use futures on the Fed Funds rate to speculate when these cuts might happen, with the CME FedWatch tool now indicating a nearly 90% probability of a cut by the March 2026 meeting. Geopolitical risks are extremely high, especially due to tensions in the Middle East, which support safe-haven assets. This uncertainty is reflected in the options market, where the cost of protection is increasing. We should consider buying call options on gold miners or volatility indexes, as these could see significant gains if the situation worsens. The trade on US Dollar weakness is becoming crowded, creating its own risks as we approach year-end. We’ve seen similar one-sided positioning in the past, like the dollar sell-off in early 2024, which reversed sharply. Buying inexpensive, out-of-the-money put options on EUR/USD or AUD/USD could be a smart way to hedge against a sudden bounce-back in the dollar. Create your live VT Markets account and start trading now.

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