US continuing jobless claims reach 1.953 million, falling short of projections of 1.96 million
by VT Markets
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Aug 14, 2025
**Gold Prices and US Treasury Yields**
The job market is strong, with jobless claims staying below two million—levels we haven’t seen consistently since before the pandemic. This robust outlook, along with ongoing inflation, suggests the Federal Reserve may take a tough stance at the upcoming September meeting. Consequently, assets sensitive to interest rates may face challenges.
Gold is having a tough time gaining traction, even with high inflation, because the 10-year Treasury yield is approaching 5.0%. As long as the US Dollar and yields remain strong, we believe gold’s potential will be capped around $3,350. Selling call options above $3,400 might be an effective way to generate income in this fluctuating market.
**Cryptocurrency Market Volatility**
The cryptocurrency market is experiencing major ups and downs following Bitcoin’s recent peak. The implied volatility on Bitcoin options has surged to nearly 85%, showing the uncertainty following its correction from an all-time high. We should explore options straddles, which can profit from large price movements in either direction, rather than relying on a specific trend.
Rising trade tensions pose additional risks to the entire market. A potential drop of 0.7 percentage points in global output could lead to a sell-off in stocks. We might consider purchasing protective put options on key indices like the S&P 500 to safeguard our portfolios.
Given these mixed signals, we must use leverage wisely. The current environment offers both opportunities and risks of sudden reversals. It’s best to concentrate on defined-risk strategies, like buying puts or calls, to avoid risking more capital than we can afford to lose.
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by VT Markets
Aug 14, 2025
Insights 
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