India’s M3 money supply dropped from 9.6% to 9.2% in October. This is a decline compared to earlier figures. Gold prices remain steady above $4,000. However, a strong US dollar is limiting its potential for growth. Meanwhile, the Canadian dollar has weakened as demand for the US dollar increases, following a cautious statement from the Federal Reserve.

Silver And Nasdaq Performance

Silver is holding close to $49 due to uncertainty in US finances and a trade truce. The Nasdaq 100 index has pulled back but is on track for an 11% rally that could set new records. The British pound has a weak tone, and the Euro is staying within a narrow range, supported in the low/mid 1.15s. The EUR/USD has dropped to two-month lows around 1.1520, while GBP/USD has fallen below 1.3100, reaching six-month lows. Gold prices have turned negative around $4,000. In the cryptocurrency market, Bitcoin, Ethereum, and XRP are facing instability as demand looks shaky. As Bitcoin celebrates the 17th anniversary of its whitepaper, it has evolved from a cypherpunk idea to a significant global financial asset. The US dollar shows broad strength, pushing EUR/USD to two-month lows near 1.1520 and GBP/USD to a new six-month low below 1.3100. This trend is driven by a cautious tone from the US Federal Reserve, especially since core PCE inflation data from September 2025 came in at a persistent 3.1%. Traders might want to consider strategies that leverage this dollar strength against major currencies.

AI Driving US Tech Stocks

Despite the uncertainty in the wider market, the AI trend remains a key factor boosting US tech stocks. The recent pullback in the Nasdaq 100 is seen as a buying chance, especially after strong Q3 2025 earnings from leading companies confirmed significant revenue growth related to AI. Investors might consider buying call spreads on tech-heavy indices to capitalize on a potential rally beyond recent highs. Gold is trading flat above the important $4,000 level, but the strong dollar is currently limiting its rise. This price reflects the significant inflation pressures seen in 2024, but the environment is creating a tight trading range. With potential US fiscal uncertainty approaching December’s budget deadlines, options straddles on gold futures could be a strategy to hedge against any resulting volatility. We’re also noticing a more cautious approach to risk in other areas. The decline in India’s M3 money supply growth to 9.2% suggests that the central bank is intentionally cooling the economy to manage inflation. Together with wavering demand for cryptocurrencies like Bitcoin, this may call for hedging long positions in emerging markets or other speculative assets. Create your live VT Markets account and start trading now.

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