The latest Baker Hughes US Oil Rig Count is now at 412, up from 409 rigs before. This small increase points to a slight rise in oil drilling activity across the United States. The global market is shaped by several economic factors, like the US Federal Open Market Committee’s plans for interest rate cuts. This potential for further reductions, combined with the holiday season, has reduced volatility in the market.

Gold And Ethereum Price Update

Gold prices remain steady above $4,350, showing little change despite new economic reports. Meanwhile, Ethereum’s price is stable above $2,900, even with increased selling pressure, highlighted by a 400K ETH deposit surplus. Looking ahead, the economic outlook for 2026 looks bright, with continued growth expected in advanced economies. The cryptocurrency market remains unpredictable, affected by regulatory changes, Digital Asset Treasuries, and trends in tokenization. FXStreet offers this information for educational purposes and does not recommend specific investments. All investments carry risks, and it’s up to investors to do their own research and make informed choices. FXStreet and its authors are not responsible for any errors or missing information. The rise in the Baker Hughes oil rig count to 412 may indicate a gradual increase in future U.S. oil production. Recent EIA data shows that U.S. crude output has consistently stayed above 13.4 million barrels per day in the last quarter of 2025. Since OPEC+ is maintaining current production levels, any signs of weaker global demand in early 2026 could lead to oversupply, making puts on WTI crude futures an appealing safeguard.

Market Reaction To FOMC Rate Cuts

The FOMC is clearly signaling that more rate cuts are likely, which should weaken the dollar, at least on paper. However, major pairs like EUR/USD and GBP/USD have shown little response in this quiet holiday market, creating an opportunity. Selling short-dated options strangles on these pairs could help collect premiums as we expect this sideways trend to continue into the new year. Gold’s stability above $4,350 results from the Fed’s accommodating stance and ongoing central bank buying throughout 2025, which the World Gold Council reported exceeded 1,000 metric tons for the year. While there is strong support, this high price makes it susceptible to a quick drop if the economic outlook for 2026 turns out to be more robust than anticipated. We should think about purchasing some affordable out-of-the-money puts to guard against a sudden downturn when market activity picks up. The current calm in the market, with the VIX index recently falling below 14, is typical for this year-end holiday season. This low-volatility setting makes it cheaper to buy options that could benefit from future price changes. Investing in long-dated calls on volatility indexes might be a wise move, as we expect significant market movements to return in mid-January. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now