Private sector credit in South Africa rose to 7.79% in November from 7.26% earlier. This increase indicates that economic activities in the country are ongoing. In the forex market, the EUR/USD pair is struggling to stay above 1.1750 as we close out 2025. The US Dollar remains popular, putting pressure on this currency pair.

Gold Prices And Interest Rates

Gold prices bounced back, holding steady above $4,300, marking its best annual gain since 1979. The rise is helped by expectations of US interest rate cuts anticipated for 2026. Bitcoin, Ethereum, and Ripple saw small gains as the year wraps up. Bitcoin may trend upwards within a triangle pattern, while Ethereum and Ripple are facing resistance. The economic outlook for advanced countries in 2026-2027 looks strong. Many positive factors from 2025 are set to continue boosting economies in 2026. The volatile crypto market in 2025 has been influenced by favorable US regulations, Digital Asset Treasuries, and the tokenization of Real-World Assets. These changes could shape the crypto landscape even more in 2026.

US Dollar And Federal Reserve Policy

As we near the end of 2025, the US Dollar is temporarily strong due to year-end adjustments, even though the Federal Reserve is hinting at rate cuts for 2026. This presents a good opportunity for traders in the coming weeks. However, we believe the dollar’s strength will lessen, as market pricing from the CME shows an over 80% chance of a rate cut by March 2026. These expectations of lower US interest rates are fueling Gold’s impressive rally to over $4,300, its best year since 1979. While some may see the 65% annual gain as a reason to take profits, demand for gold remains strong. Data from the World Gold Council in the latter half of 2025 confirmed that central banks continued to buy gold heavily. In currency markets, pairs like EUR/USD and GBP/USD are under pressure from the strong dollar, trading near 1.1750 and 1.3450, respectively. This could be a possible entry point for long positions as we enter the new year. Historically, year-end dollar strength often reverses sharply in January when the Fed’s policy focus returns. In the commodities space, WTI crude oil is struggling below $58 due to oversupply concerns, contrasting with the bullish sentiment surrounding precious metals. Recent EIA reports from the fourth quarter of 2025 have consistently shown rising inventories, which may keep oil prices low into the first quarter of 2026. Finally, the increase in South Africa’s private sector credit to 7.79% indicates underlying strength in some emerging markets. A weaker dollar in 2026 could significantly benefit emerging market currencies like the South African Rand, creating favorable conditions for carry trades or long positions in emerging market currency futures. Create your live VT Markets account and start trading now.

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