In December, China’s retail sales grew by 0.9% compared to last year, which was below the expected 1.2%. This lower number reflects the economic ups and downs happening in the region. In the fourth quarter of 2025, China’s economy grew by 1.2%, slightly higher than the anticipated 1.0%. These numbers show mixed economic performance, especially as other markets are influenced by ongoing trade tensions between the EU and the US.

Gold Market Trends

Gold prices jumped to a record high of around $4,700 due to new trade disputes involving the US and Greenland. The US Dollar weakened, impacting global markets and increasing demand for safe-haven assets. Cryptocurrency prices fell, with Bitcoin dropping below $93,000, while Ethereum and Ripple also saw declines as fears of a trade war intensified. Global economic conditions and market movements are unsettled, affecting regions and asset classes in different ways. It’s crucial to stay informed and make well-considered decisions as these changes continue. The growing conflict over Greenland is creating significant market fears, indicating that we should prepare for increased volatility in the coming weeks. We could buy call options on the VIX index, as it has surged in past trade disputes, such as those between the US and China in 2018 and 2019. This could act as a hedge against rising market fluctuations.

Strategic Approaches to Currency and Commodity Markets

Gold is benefiting from this shift towards safety, and its rise to $4,700 shows strong momentum. This aligns with trends from late 2024 when central banks increased buying, pushing prices to record highs. We should consider buying call spreads on gold futures to take advantage of potential further increases while managing the high costs of options. US tariff threats are putting pressure on the dollar, influencing GBP/USD towards 1.3400. We could adopt strategies that thrive on continued dollar weakness, like buying put options on the US Dollar Index (DXY). This strategy focuses on the political risks affecting the dollar rather than the fundamental strengths of other currencies. The data from China offers a more complex opportunity. The lower retail sales indicate that Chinese consumers are cautious, a trend that has emerged since the post-pandemic recovery stalled in 2024. However, the stronger-than-expected GDP and industrial production data suggest that China’s manufacturing and export sectors remain strong. This contrast points to a trading opportunity in commodity-linked currencies. The Australian dollar is rising because it is closely linked to Chinese industry, which continues to require raw materials. With Australia’s exports to China exceeding A$19 billion per month multiple times in 2025, we should consider call options on AUD/USD to profit from this industrial demand. Create your live VT Markets account and start trading now.

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