### Gold Prices and Market Reactions Cryptocurrency markets dipped, with Bitcoin staying above $87,000 but feeling some pressure. Other coins like Ethereum and Ripple also faced selling pressure as investors shifted to a more cautious mindset. In the forex market, GBP/USD dropped just below 1.3500 after the US Dollar gained strength following GDP data. Likewise, EUR/USD pulled back from nearly 1.1800 after recent economic reports. Dogecoin continued to slide, affected by low futures open interest and funding rates. This trend mirrors the overall negative sentiment in the crypto market, impacting other digital currencies as well. ### Economic Divergence and Market Uncertainty The recent drop in durable goods orders, which came in at just 0.2% for October, indicates a potential slowdown in the economy, contrasting with the strong 4.3% GDP growth from the third quarter. This difference is creating uncertainty as we approach the end of the year. We must consider whether the strong performance in stocks can continue if the economy is truly slowing down. Market expectations heavily lean towards Federal Reserve rate cuts in the coming months due to political pressure and demand for safe assets. However, with the latest Consumer Price Index data for November 2025 showing inflation remaining sticky at 2.8%, the Fed may act more slowly than many expect. This could lead to volatility in early 2026 if the market needs to adjust its rate expectations. The impressive rise in precious metals, with gold close to $4,500 and silver surpassing $71, signals weakness in the dollar and a desire for easier monetary policy. These movements are becoming intense, and while the trend remains strong, the thin trading during the holiday season could lead to sharp pullbacks. Using options to safeguard these gains or to prepare for a reversal could be a smart move. Despite potential warning signs, sentiment in the stock market stays very positive, with the Dow Jones climbing. The CBOE Volatility Index (VIX) has been below a calm 14 for over a month, a level of complacency we haven’t seen since the post-pandemic recovery in 2021. This lack of concern could leave the market vulnerable if any negative events arise during the holiday season. In currency trading, the weak US dollar continues to boost pairs like AUD/USD, which remains above the 0.6600 mark. Many believe the dollar will keep weakening, making this a crowded trade. We should be alert for any reversal signs, as a reversal of these positions could happen quickly and sharply. Create your live VT Markets account and start trading now.

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