The S&P 500 climbed but stayed below 6,900, indicating a lower high. While stocks overall didn’t mark a lower high, the Nasdaq outperformed moderately. Clients are advised to take profits from long positions and consider shorting. EUR/USD continued its monthly rise, crossing 1.1600 and reaching around 1.1650 on Thursday. Investors are now focusing on the upcoming flash Q3 GDP figures from the euro area. At the same time, GBP/USD dropped below 1.3200 due to light selling, even though broader market improvements helped the US Dollar.

Gold Price Movement

Gold retreated to about $4,150 per troy ounce after previous gains. This drop happened as US Treasury yields rose and the US Dollar weakened. Both Aerodrome and Velodrome tokens fell 20% following their merger announcement by Dromos Labs. The Bank of Japan is facing scrutiny as speculation about possible interest rate hikes intensifies. With rates currently at 0.5%, pressure is building on Governor Ueda about upcoming decisions. Meanwhile, Ripple is trading below $2.50, buoyed by a positive mood in the cryptocurrency market. This content reflects general market insights and trends, not specific investment advice. The author has no investments in the entities mentioned, and FXStreet does not provide registered investment advice.

Nasdaq Internal Divergence

The S&P 500 shows signs of weakness, failing to break above 6,900 again, suggesting a lower high is forming. The latest Consumer Price Index data for October 2025 came in high at 3.8%, allowing the VIX to rise back toward 18 from lower levels. In this environment, traders might consider reducing long positions and looking at puts or short futures on the index. There’s also a notable divide within the Nasdaq, which signals potential problems. While major companies like Microsoft and NVIDIA remain strong, there are signs of weakness in previous leaders such as Apple and Meta. Traders should be cautious of this internal divergence, as it often indicates an upcoming market pullback. The recent dip in the US Dollar is related to the 43-day government shutdown that ended in early November 2025. This incident is likely to reduce Q4 GDP growth forecasts by about 0.4%, making currencies like the Euro more attractive. We see the EUR/USD pair having the potential to rise beyond 1.1600, especially before the Eurozone’s Q3 GDP figures are released. Even with a weaker dollar, gold has difficulty maintaining gains near $4,150. Rising U.S. Treasury yields are the main challenge, with the 10-year note pushing above 5.1%. This makes gold, which doesn’t yield returns, less appealing, so we recommend avoiding aggressive long positions for now. In Japan, speculation is growing that the Bank of Japan may soon need to increase its 0.5% interest rate. Core inflation in Japan has remained above 2.5% for over six months, increasing pressure on the central bank. This policy shift from the U.S. could lead to volatility and potential shorting opportunities in the USD/JPY pair in the coming weeks. Create your live VT Markets account and start trading now.

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