The S&P Global Services PMI in the United States was reported at 52.9 in December, missing the expected 54.1. Retail sales in the US were almost unchanged at $732.6 billion in October, falling short of the anticipated 0.1% rise.

Gold Price And Market Focus

Gold is stable above $4,300, supported by a weaker US dollar after the unemployment rate rose to 4.6% in November. Recent PMI figures indicate slower growth in the private sector for December. Gold’s price has slightly dropped since the start of the week, but it still holds gains from the previous week. Current reports are focusing on the recent peace talks between Russia and Ukraine, upcoming US employment data, and rising tensions in Venezuela. BNB’s price has seen a slight decrease, trading around $855 as of Tuesday. The bearish sentiment is growing as retail activity increases, reflected in BNB’s on-chain and derivatives data. The FXStreet Team’s report offers insights on several financial instruments based on the latest economic indicators.

US Economic Outlook

Recent economic data clearly shows a slowing US economy as we approach 2026. The missed S&P Global Services PMI and flat retail sales are part of a broader trend. Last month, the Q3 GDP was revised down to 1.5%. This ongoing loss of momentum suggests that adopting bearish strategies on US equity indices might be wise. With the unemployment rate climbing to 4.6%, the highest level since the pandemic recovery began in 2022, the Federal Reserve’s options may be limited. This situation makes further interest rate hikes unlikely and may spark discussions about rate cuts in the new year. Traders may want to prepare for a weaker US dollar against major currencies. This environment benefits gold, which remains steady above $4,300. The combination of a weaker dollar and ongoing geopolitical tensions, from Ukraine to Venezuela, enhances gold’s appeal as a safe haven. Buying call options on gold or gold-related ETFs could provide significant gains in the coming weeks. Volatility is increasing, with the CBOE Volatility Index (VIX) staying above 20 for the first time since early 2025 market jitters. This suggests rising market anxiety, making long volatility positions appealing. For index traders, purchasing put options on the S&P 500 can act as a hedge against a potential downturn due to these weakening fundamentals. In the cryptocurrency market, the outlook for BNB seems negative below $855. On-chain data indicates a sharp rise in BNB supply on exchanges, which often signals upcoming selling pressure from holders. Moreover, the funding rate for BNB perpetual swaps has turned negative, suggesting that derivative traders predominantly expect a price drop. Create your live VT Markets account and start trading now.

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