In November, Spain’s Harmonized Index of Consumer Prices (HICP) increased by 3.2% compared to last year. This rise was higher than the expected 3.1%. Gold prices exceeded $4,300, reaching their highest since October 21, thanks to a soft stance from the Federal Reserve. The US Dollar remains weak and struggles to draw buyers.

Currency Markets Update

In currency news, EUR/USD held steady around 1.1750, as expectations shift with the Federal Reserve and the European Central Bank. Meanwhile, GBP/USD stayed under 1.3400 and was only slightly affected by mixed data from the UK, which showed a 0.1% decrease in GDP but a 0.5% increase in manufacturing production. Litecoin’s price stayed above $80, but it might face a risk of a long squeeze as Open Interest falls. Aave traded above $204, approaching a potential breakout from its downward trend, which could lead to a bullish shift. The S&P 500 gained ground as US 2-year yields fluctuated around 3.50% after a seen dovish rate cut by the Federal Reserve. This rate cut especially benefited sectors outside of technology. The gap between the Federal Reserve and the European Central Bank is becoming a key focus for the weeks ahead. With the Fed lowering rates amid rising jobless claims, the US Dollar seems to be weakening. Recent GDP figures from Q3 2025 show a preliminary drop of 0.5%, further reinforcing this dovish outlook.

Impact on the Eurozone and Gold

The slightly higher Spanish inflation of 3.2% plays an important role here. It shows that price pressures in the Eurozone are persistent, which gives the ECB little reason to follow the Fed. Core inflation in the Eurozone for November was 3.5%, well above the ECB’s target, supporting a more hawkish stance. This policy divide, a sharp shift from the coordinated measures of 2022 and 2023, is likely to continue benefiting the EUR/USD pair. Strategies that look for further increases toward the 1.1800 level could be wise. We should seek opportunities to position for a stronger Euro against the weakening Dollar as the new year approaches. Gold’s rise above $4,300 is a direct result of this environment, driven by a falling dollar and a preference for safety. As long as the Fed shows signs of economic weakness and maintains its easing approach, gold’s upward momentum is expected to continue. Keeping long positions through futures or call options looks like a smart move. In the stock market, the Fed’s rate cut is prompting a noticeable shift away from the tech-heavy leaders of the past few years. The rally is expanding into non-tech sectors that benefit more directly from lower borrowing costs. It’s wise to focus derivative strategies on this rotation, possibly favoring value-oriented index futures over those heavily invested in technology. Create your live VT Markets account and start trading now.

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