**Gold’s Momentum and Meme Coin Rise** Litecoin has jumped past $118, showing a 10% increase this week, thanks to rising open interest and trading volume. Political uncertainty can lead to volatility in the US Dollar, which might affect policymakers and create more demand for safe-haven assets. This information is for educational purposes only and should not be taken as investment advice. FXStreet emphasizes the need for careful research, as investing comes with risks, including potential losses. The organization is not responsible for any inaccuracies or omissions in this content. **Political Turmoil and Safe Haven Assets** The current US government shutdown is causing major uncertainty, which is affecting the markets. This turmoil is weakening the US Dollar, pushing traders to seek refuge in other major currencies and safe-haven assets. We expect this weakness in the dollar to continue for several weeks. In this situation, it looks advantageous to take long positions on currencies like EUR/USD and GBP/USD. The Euro is holding steady above 1.1750 and the British Pound has reclaimed 1.3500. As long as Washington remains in a deadlock, the trend appears upward. We see a chance to buy call options on these currencies to benefit from any future gains while managing risk. Gold is behaving like a traditional safe haven, moving towards $3,900 an ounce amidst the chaos. A weak dollar combined with a dovish Federal Reserve makes gold particularly appealing. Historically, times of uncertainty and low real interest rates have been very positive for precious metals. We also need to consider the rise in market volatility, similar to the government shutdowns in 2013 and 2018. During the December 2018 shutdown, the VIX volatility index rose above 30, and it’s now climbing past 25. This increase makes buying options more costly, indicating that strategies like credit spreads might be more effective if you think the situation will eventually stabilize. The shutdown leads to a data blackout, which means we won’t see important releases like CPI or Non-Farm Payrolls. The last jobs report showed a lower-than-expected gain of 155,000, and without new data, the Fed is essentially operating in the dark. This lack of information will likely push the central bank to postpone tightening plans, adding further downward pressure on the dollar. Create your live VT Markets account and start trading now.

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