The United Kingdom’s Gross Domestic Product (GDP) rose by 0.3% in November, exceeding the expected increase of 0.1%. This faster growth has helped the pound sterling rebound slightly, keeping the GBP/USD pair above the 1.3400 level.

Gold and US Economic Indicators

In other news, gold is currently trading around $4,600 per troy ounce after retreating from its record high of $4,643. This decline follows positive US economic data that supports the Federal Reserve’s decision to maintain interest rates. The cryptocurrency market experienced a drop after the US Senate delayed a discussion on market structure. This delay occurred after Coinbase withdrew its support due to various issues. Experts suggest that traders should explore different brokers while weighing the pros and cons of major platforms in various regions. Anyone investing should be aware of potential risks and research thoroughly before making financial decisions. The unexpected 0.3% increase in UK GDP for November indicates a stronger economy than expected. This news is particularly welcome after a difficult 2025, which saw stagnant growth reminiscent of the technical recession confirmed by the Office for National Statistics in early 2024. This resilience could help support the Pound, but its inability to stay above 1.3450 shows that the US Dollar remains strong.

US Economy and Interest Rates

A strong US economy is currently the main driver for the market, pushing the dollar higher. Solid producer price and retail sales figures back the Federal Reserve’s commitment to keep interest rates high for longer. The US labor market has continually surpassed slow-down expectations throughout 2024, maintaining a trend of strong job creation. For those dealing in interest rate derivatives, the market is quickly reversing expectations for near-term Fed rate cuts. This is a sharp change from late 2024, when Fed forecasts suggested several cuts for 2025 that never materialized. We anticipate a volatile but steady period for US rates, especially as Jerome Powell’s term as Fed Chair comes to an end. Gold’s fall from its record high over $4,600 is directly linked to the strong dollar and stable US interest rates. As the cost of holding non-yielding gold increases, we could see more selling pressure soon. This presents an opportunity to explore strategies that might benefit from either a pullback or a consolidation phase, such as selling covered call options on existing holdings. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now