The United States Commodity Futures Trading Commission (CFTC) has reported a rise in net gold positions, increasing from $240,000 to $2,312,000. This shift reflects growing market interest in gold. The NZD/USD rose towards 0.5800 after recent US manufacturing data missed expectations. The EUR/USD is trying to maintain its momentum above the 1.1735 level, while USD/CAD remains stable around 1.3750, even with a weakening US dollar and pressures from oil prices on the Canadian dollar.

Doubts Over Bank of Japan Rate Hikes

The Japanese yen weakened due to uncertainty about potential rate hikes from the Bank of Japan and fiscal worries, all occurring in a generally positive risk environment. In contrast, the Australian dollar showed little change as markets wait for upcoming CPI data. Silver prices surpassed $76.50, boosted by an increase in safe-haven demand due to tensions in Venezuela. Dogecoin surged nearly 30%, while Ripple gained momentum with rising ETF inflows and demand in derivatives. Gold prices rose back above $4,450 at the start of Tuesday’s Asian session, supported by ongoing geopolitical issues. The GBP/USD eased slightly from its multi-month high, now trading just below the mid-1.3500s as the US dollar gained strength. The significant increase in net long gold positions indicates that major investors are betting on higher prices, with an impressive jump from $240,000 to over $2.3 million. This uptick is driven by tensions in Venezuela, making gold call options and long futures contracts appealing for those looking to trade in response to safe-haven demand. Silver mirrored this trend by breaking above $76.50, which further supports a bullish outlook for precious metals.

Weakness In The US Dollar

The US Dollar’s weakness seems likely to persist, especially after recent manufacturing data indicated a contraction, with the ISM PMI dropping to 48.5. This trend continues what we have seen throughout much of 2025 and suggests weakness against currencies like the Euro and New Zealand Dollar. Investors may want to consider derivatives that benefit from a falling dollar, such as buying puts on dollar-tracking ETFs. For EUR/USD, the focus should be on the 1.1735 level; call options could effectively capture a potential breakout as the pair builds momentum. The New Zealand Dollar is also gaining strength, approaching 0.5800 due to poor US data. These currency pairs provide a direct opportunity to capitalize on ongoing US economic weakness. The crypto market is showing strong risk appetite, with Dogecoin’s 30% rise and Ripple’s steady climb above $2.13 leading the way. Ripple’s rally is supported by substantial ETF inflows, averaging over $50 million daily last week, reminiscent of the initial Bitcoin ETF boom in 2024. Long positions through futures appear promising, but due to high volatility, using options might be a smarter risk management approach. An important factor to watch is the upcoming Supreme Court ruling on presidential tariff powers, which could lead to significant market volatility. This uncertainty is similar to the unpredictable market movements experienced during the 2018-2019 trade disputes with China. Investing in VIX call options or index straddles could be a good way to hedge against sharp price movements, regardless of the court’s decision. Create your live VT Markets account and start trading now.

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