Market Movements in Commodities

Gold is currently priced just above $4,250 after a significant drop on Friday. This change comes as many expect the Federal Reserve to adopt a more relaxed approach. Silver prices are around $52.00, influenced by market risk feelings and future monetary policy. In the stock market, Cardano (ADA) is struggling, trading around $0.64. This is due to lower Open Interest, which suggests it may decline further. Broader market trends are being affected by U.S.-China trade talks and policy expectations. Traders are keeping an eye on global trade and inflation. Meetings like the upcoming Trump-Xi discussion could impact international trade relations. Germany’s producer prices are starting to improve, with a smaller annual decline of -1.7% in September 2025, compared to -2.2% the previous month. This might indicate that the worst of the deflationary trends in Europe’s largest economy are behind us. For traders, this could mean a good opportunity to consider long positions in European stocks, perhaps using call options on the DAX index, since easing deflation often leads to economic recovery.

Impact of Geopolitical Tensions

Markets now expect a more dovish Federal Reserve, which often weakens the U.S. Dollar and supports riskier assets. This sentiment follows the latest U.S. CPI data for September 2025, showing inflation cooling to 2.8%, a noticeable drop from earlier in the year. According to the CME FedWatch Tool, there is now over a 90% chance that the Fed will keep rates steady until the end of 2025. Geopolitical tensions are likely to create volatility, especially with the upcoming Trump-Xi meeting. Now is not the time for big bets in one direction; it’s wiser to use strategies that profit from sharp price movements in any direction. For example, the VIX index spiked above 20 during trade talks back in 2019, so buying straddles on sensitive indices like the S&P 500 could be a smart way to prepare for the expected changes. In the currency markets, we’re watching key levels: the EUR/USD is above 1.1650, and the GBP/USD stays above 1.3400. The Euro faces challenges due to France’s recent credit downgrade, while the Pound is awaiting UK inflation data this Wednesday, with a forecast of a drop to 2.9%. A significant change from this prediction will likely cause a major move in the Pound, making volatility plays on GBP/USD appealing. In the alternative assets arena, gold’s struggle below $4,300, despite a dovish Fed outlook, signals caution. In the crypto world, Cardano (ADA) shows bearish signals, as open interest has reached a yearly low. Data from Coinglass reveals that the ADA long/short ratio is down to 0.85, indicating that more traders are betting on further price declines. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now