The UK’s S&P Global Construction PMI for September was 46.2, slightly above the expected 46.1. This small increase suggests a less gloomy outlook for the construction sector than predicted. Gold prices dropped to $3,930 per troy ounce after reaching a high of $3,950. The metal continues to attract buyers as a safe haven amidst ongoing uncertainties, like the possible US government shutdown.

The Struggle of GBP/USD

The GBP/USD pair has had a hard time recovering, stabilizing below the mid-1.3400s. A strong US Dollar has hindered the pair’s ability to build on its previous gains. In the third quarter, gold outperformed Bitcoin, achieving record highs and significant gains. Bitcoin, on the other hand, provided only modest returns, performing weakly compared to gold. FXStreet has introduced a new design to enhance its editorial and business strategies. This initiative is a significant step in their goal to support traders and tackle the challenges they face. Aptos (APT) holds promise for growth despite a slight 1% drop in its price. Increased retail demand and stablecoin issuance may boost its expected growth.

Gold’s Resilience Amidst Uncertainty

Gold has surged past $3,900, proving its worth as a safe haven during the ongoing US government shutdown. This surge is supported by expectations of interest rate cuts by the Federal Reserve and political uncertainties in the US. The rally builds on strong central bank buying, a trend seen since late 2023 when net purchases reached near-record levels. Despite the shutdown, the US Dollar remains strong, pushing EUR/USD down towards 1.1650. This isn’t just a reflection of the US economy’s strength but a shift towards liquidity amid political issues in France. For now, the dollar retains its status as the world’s top safe-haven currency, similar to the 35-day shutdown in 2018-2019 when the Dollar Index remained stable. The pound sterling is particularly weak, with GBP/USD struggling to stay around the mid-1.3400s. The recent UK construction PMI reading of 46.2 confirms the sector is facing a deeper contraction, which has worsened throughout 2025. UK inflation, last noted at 2.8%, remains stubbornly above the Bank of England’s target, setting the stage for a challenging stagflationary environment that could impact the currency. In the upcoming weeks, we should brace for increased volatility, making options strategies appealing. The ongoing political situation in the US suggests that implied volatility may stay high, presenting opportunities in VIX derivatives. We see the most straightforward path being to bet long on the US dollar against both the Euro and Pound Sterling. For gold, using call options or bull call spreads can capture further gains as uncertainty persists. Conversely, buying puts on GBP/USD offers a clear way to prepare for a potential drop towards the 1.3400 level. The weak UK economic data provides a solid fundamental reason for this bearish outlook. Create your live VT Markets account and start trading now.

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