Gold’s Record High

Uniswap’s price is holding above $6, driven by excitement about the UNIfication proposal vote. Traders believe this could impact the market. Meanwhile, XRP remains steady above $1.90, with ongoing investor interest helping it stay strong despite facing some resistance. Looking ahead to 2026, there may be changes in the market. It’s wise to be cautious about traditional strategies as we deal with questions around growth, inflation, and geopolitics as the new year approaches. As we near the end of 2025, trading volumes are decreasing due to the holidays, which could lead to sudden price changes on low volume. There’s a sense that the market may undergo a significant change, so it’s important to stay alert and not get too comfortable in what might feel like safe or overcrowded trades. This situation is perfect for using options to control risk.

EUR USD Strategy

The EUR/USD is showing strength, but since the Relative Strength Index is close to 70, taking a long position could be risky as we enter the new year. Instead, we might consider buying call spreads to limit our risk while maintaining a bullish stance, or selling out-of-the-money puts to earn premium from the high volatility. The European Central Bank (ECB) has kept a careful approach throughout 2024, supporting the currency without promising drastic actions. Sterling’s rise to ten-week highs, even after a rate cut by the Bank of England, shows strong market demand. We should consider protecting our long futures positions with protective puts, especially as holiday liquidity decreases, which could lead to sudden reversals. This market behavior resembles what we experienced in late 2023 when traders looked beyond immediate central bank data to focus on longer-term inflation trends. Gold is nearing a record $4,500, with strong momentum supporting the bulls amid geopolitical uncertainty. Using call options allows us to take advantage of further price increases while clearly defining our risk, which is essential at these record levels. This rally mirrors the strong movement we saw in late 2023 when gold broke the $2,000 mark. WTI crude prices dipping below $58 provide a bearish opportunity, especially with news of new supply coming into the market. We should consider buying put options or establishing bear put spreads to benefit from a potential decline toward the mid-$50s. This supply issue adds to the fragile demand, as OPEC+ data from the third quarter of 2025 shows that compliance among its members is starting to weaken. The warning about a potential market shift in 2026 suggests we need to keep an eye on overall market volatility. Implied volatility tends to be low during the holidays, making it a good time to think about buying longer-dated VIX call options as a cost-effective hedge against possible surprises in the new year. We’ve seen how quickly market sentiment changed during the inflationary period from 2022 to 2023, so being ready for a similar shift is wise. Create your live VT Markets account and start trading now.

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