EUR/USD stays stable at 1.1626 with minor losses ahead of Federal Reserve’s decision
The EUR/USD currency pair ended Tuesday with a slight dip of 0.09%, trading at 1.1626 as the market waits for the Federal Reserve’s policy announcement.
US economic data indicates a strong labor market with more job openings, but expectations for a Fed rate cut are mostly unchanged. Money markets are suggesting an 88% chance of a 25-basis-point cut. The economic forecasts and the “dot plot” may provide insight into future interest rate trends.
In Germany, the trade surplus for October increased to €16.9 billion, exceeding expectations thanks to strong exports. The Bundesbank President believes the current monetary policy is well-positioned, with no changes expected soon.
The currency heat map shows movements among major currencies. The US Dollar Index is up 0.14% at 99.23, supported by strong job openings. There is speculation about a possible rate cut by the Federal Reserve, though a hawkish stance from Powell might temper immediate easing expectations.
EUR/USD is trading in a narrow range below 1.1650, with immediate support around the 50-day simple moving average (SMA) at 1.1604. A decline below this level could lead to further drops towards 1.1500, given the weakening buying momentum.
As the Federal Reserve’s decision approaches, EUR/USD remains stable around 1.1626. Markets have factored in an 88% probability of a 25-basis-point cut, making the announcement less critical than the guidance that follows. Traders should prepare for potential volatility when Chairman Powell speaks.
Traders face tension due to mixed data. Strong US labor figures from November contrast with slower economic growth. Recent data showed Q3 2025 GDP growth at 1.8%, while the latest CPI report indicated core inflation is still at 3.2%. This complex situation suggests the Fed may opt for a “hawkish cut,” lowering rates now but signaling fewer cuts ahead in 2026.
Our main strategy is to look for a dollar-positive reaction if Powell challenges market expectations for substantial cuts next year. If this occurs, we anticipate EUR/USD to break below the 50-day SMA support at 1.1600. A drop below could lead to a move toward the 1.1500 psychological level in the coming weeks.
On the flip side, if Powell adopts a more dovish tone and the “dot plot” suggests more cuts in 2026, the US dollar might weaken. In this case, we would expect EUR/USD to rise above the 1.1650 resistance level. A sustained move above that would bring the 1.1700 level back into play.
Given the uncertain nature of this event, using options to manage the expected volatility could be beneficial. A long straddle or strangle strategy—buying both a call and a put option—could help us profit from significant price movements in either direction, allowing us to benefit from the breakout without needing to predict Powell’s stance perfectly.
Meanwhile, the European Central Bank seems to be holding steady, highlighting a divergence in policy. Following their recent meeting in November and with Bundesbank President Nagel’s neutral comments, they appear in no hurry to change their policy. This context supports a stronger dollar if the Fed does not suggest major future easing.
We’ve seen this pattern before, particularly during the 2019 rate-cutting cycle, where the first cut didn’t lead to lasting dollar weakness. The Fed cut rates as a form of “insurance” rather than initiating an aggressive easing path. Current economic data suggests that we might be entering a similar scenario, making a hawkish surprise more likely.
US crude oil stocks drop by 4.8 million, missing projections of 1.7 million
The American Petroleum Institute (API) reported that US crude oil stocks dropped by 4.8 million barrels, which is more than the expected decrease of 1.7 million barrels for the week ending December 5th.
Gold prices fluctuated, initially falling to around $4,200 but then rising due to increased demand for safety ahead of the Federal Reserve’s upcoming interest rate decision, where a 25 basis point cut is anticipated.
Market Movements
The US Dollar gained strength, impacting various markets, including WTI crude oil, which fell below $58.50. Ethereum rose by 6%, boosted by increased whale buying and comments from President Donald Trump about the Federal Reserve Chair. Despite a global economic slowdown in 2025, both global and European economies have shown resilience. However, the risks for economic recovery are growing, which could affect the global macro and credit outlook in the medium term. Bitcoin traded above $90,000 in a cautious crypto market, with altcoins like Ethereum and Ripple holding important support levels. In currency markets, the EUR/USD dropped for the fourth straight day, nearing the 1.1600 level. Meanwhile, GBP/USD moved toward the midrange, reacting to technical rejections and waiting for the Federal Reserve’s decisions. The bigger-than-expected decline in crude oil inventories, at -4.8 million barrels compared to a predicted -1.7 million, suggests tightening supply. However, oil prices remain under pressure due to a stronger US dollar. This trend has been consistent in 2025 when the Dollar Index (DXY) goes above 106. Traders might consider buying January call options on WTI with a strike price near $60 to prepare for a potential rebound if the dollar weakens after the Federal Reserve’s announcement.Federal Reserve Expectations
All attention is focused on the Federal Reserve, with a 25-basis-point rate cut already expected in the market for tomorrow. The central bank’s tone will be crucial; a “hawkish cut,” indicating this may be a one-time change, could further boost the dollar. We saw similar behavior in the summer of 2019, which caused sharp and unpredictable movements in currency pairs like the EUR/USD. Gold’s stability around $4,200, even with a strong dollar, reflects significant anxiety among investors. Interest in gold call options with a $4,300 strike price has risen over 15% this past week, suggesting many are betting on a continued upward trend as a safe haven. This serves as a key indicator of fear in the market, and investors should consider protecting long positions with put options or using call spreads to manage risk ahead of the Fed’s commentary. With Bitcoin maintaining its value above $90,000, the crypto market is seen as both a risk asset and a hedge against uncertainty in the macroeconomic landscape. The 30-day implied volatility for Bitcoin options has risen back above 80%, a level last seen during the sharp correction in the third quarter of 2025. Given the expected price fluctuations, strategies like long strangles could effectively capitalize on the volatility without committing to a specific direction. Create your live VT Markets account and start trading now.Investors await the final Federal Reserve interest rate decision while the Canadian Dollar remains stable.
The Canadian Dollar (CAD) stayed mostly unchanged against the US Dollar (USD) as everyone waited for the last Federal Reserve interest rate decision of the year. Many expect the Fed to cut rates for the third time in a row. People are particularly eager to learn about any changes in the Fed’s Summary of Economic Projections (SEP) and how Fed Chair Jerome Powell communicates these updates as his term comes to an end.
Trade Tensions and External Factors
One thing affecting the Canadian Dollar is ongoing trade tensions with the Trump administration. Recently, President Donald Trump announced an additional $12 billion in agricultural support to help US farmers dealing with disputes. Tensions remain high as Trump considers tariffs on Canadian fertilizer, which is vital for US agriculture. The Canadian Dollar recently rose by 2.3% after reaching lows in November but has stabilized ahead of the Fed’s decision. Market watchers are paying close attention to possible changes in the Fed’s interest rate expectations for 2026. Technical indicators suggest that the recent strength of the CAD may be starting to fade. Several factors impact the Canadian Dollar, including the interest rates set by the Bank of Canada, oil prices (as oil is Canada’s top export), and general economic health indicators like GDP. The performance of the US economy also heavily influences the CAD. When inflation is high, interest rates usually increase, drawing foreign investment and strengthening the CAD. Macroeconomic data, such as GDP and employment figures, also affect the CAD’s value. With the final Federal Reserve interest rate decision of 2025 happening tomorrow, the Canadian Dollar stands at about 1.3850 against the US Dollar. A rate cut is anticipated, so the focus will be on Jerome Powell’s guidance for 2026. If he hints at a more aggressive cutting cycle, the US Dollar could weaken. Conversely, a “wait-and-see” stance might strengthen it.Strategy for Trading Volatility
Given this uncertainty, our immediate recommendation is to trade on volatility. The market is nervous, and any surprises from the Fed’s economic projections could lead to significant shifts in USD/CAD. Buying at-the-money straddles or strangles with short-term expirations can be profitable, whether the exchange rate moves sharply up or down after the announcement. However, our general outlook leans toward Canadian Dollar weakness in the coming weeks. The recent 2.3% surge of the loonie seems to have run its course, and technical indicators are showing it may be overbought. Ongoing trade threats from the US, especially regarding fertilizer tariffs, add more risk to the situation. This cautious perspective is further supported by persistently low oil prices, with WTI crude struggling to stay above $58.50 a barrel. This is troubling for Canada, considering the healthier $75-$80 per barrel range seen for much of 2024. With energy products making up over 20% of Canada’s total exports, according to recent Statistics Canada data, low oil prices lead to a weaker economic outlook and less support for the loonie. Thus, we recommend positions that benefit from a rising USD/CAD, such as purchasing call options with expiry dates in January or February 2026. This strategy allows us to capitalize on a potential upward trend while limiting risk if the Fed’s announcement turns out to be unexpectedly negative for the US Dollar. The high price of gold, now near $4,200, indicates a broader market fear that often boosts the US Dollar as a safe-haven asset, even in a rate-cutting environment. Create your live VT Markets account and start trading now.Dow Jones Industrial Average falls 1750 points amid Fed rate cut expectations
The Dow Jones Industrial Average dropped by 1,750 points, marking its second day of losses. Investors are eagerly awaiting the Federal Reserve’s interest rate decision, which has an 87% chance of leading to a cut.
The S&P 500 gained slightly, up 0.1%, while the Nasdaq increased by 0.2%. All eyes are on Federal Reserve Chair Jerome Powell’s comments regarding rates, as markets deal with inflation and economic uncertainty.
Small Caps and Silver Miners Performance
Small cap stocks and silver miners showed strong performance. The Russell 2000 reached a new intraday high. However, other economic indicators were mixed. A stable JOLTS job openings report contrasted with slower hiring and rising inflation worries among small businesses. The Dow Jones Industrial Average tracks 30 major US stocks but has limitations compared to broader indices like the S&P 500. Its changes depend on company earnings, economic data, and Federal Reserve interest rates. Dow Theory, created by Charles Dow, helps identify market trends by comparing the DJIA with the Dow Jones Transportation Average. There are various ways to trade the DJIA, including ETFs, futures contracts, and mutual funds. Joshua Gibson has joined the FXStreet team, bringing his expertise in economics and finance for detailed market analysis. The Orange Juice Newsletter offers daily insights from market experts.Trader Expectations and Market Strategies
Traders are expecting a quarter-point rate cut from the Federal Reserve today. The main focus will be on Chairman Powell’s guidance. The Dow’s steep drop of 1,750 points suggests unease, even with other indices holding steady. This situation could create opportunities for strategies to benefit from either a sudden market rebound or ongoing volatility. Since the market has already priced in an 87% chance of a rate cut, a classic “sell the news” scenario poses a risk. If Powell hints at this being the last cut for a while, markets could drop further. Traders may want to consider buying short-dated put options on index ETFs like DIA to protect against this potential downturn through December. Recent market fluctuations have led to higher volatility, with the VIX, a measure of market fear, rising above 22 from calmer levels witnessed earlier this fall. This increased volatility makes selling options premiums enticing, yet risky, for those who believe Powell will calm market fears. Well-structured credit spreads could take advantage of a post-announcement drop in volatility. We should also recognize strong areas in the market. The impressive performance of the Russell 2000 and silver futures indicates that targeted bullish strategies could work well. Using call options on ETFs like IWM (for small caps) or SLV (for silver) can help capture gains while managing risk. The recent economic data supports the market’s uncertainty and the Fed’s challenging position. November 2025 data shows headline inflation stubbornly at 3.2% while job growth slowed to 150,000. This conflicting information makes straddles or strangles, which profit from large price changes in either direction, a sensible approach around today’s announcement. According to Dow Theory, we should look for confirmation between indices. While the Dow Jones Industrial Average has weakened, the Dow Jones Transportation Average remains strong, creating uncertainty about the overall trend. We’ll observe if the transports can maintain their strength post-Fed announcement since any breakdown could signal bearish trends. Create your live VT Markets account and start trading now.Silver’s price rise after reaching a record high shows caution due to RSI divergence
Silver has reached a record high of $60.75, with bulls now eyeing $61.00, $61.50, and $62.00. However, a bearish RSI divergence hints at a possible loss of momentum and exhaustion in upward movement.
On Tuesday, Silver’s price rose over 4% and broke its previous high of $60.57, totaling a remarkable 110% increase for the year. Currently, XAG/USD is trading at $60.65 after hitting $60.75.
Technical analysis shows the potential for more gains, with $61.00 acting as the next resistance point. Still, the negative divergence suggests that Silver’s upward trend may be in trouble, as the RSI didn’t match the peak price.
If Silver surpasses $61.00, it may face resistance at $61.50 and $62.00. On the other hand, if it drops below $60, we could see a correction toward $56.49, where there is major support at around $54.46.
Silver prices are influenced by various factors, like geopolitical tensions and interest rates. While silver is not as popular as gold, it’s still valuable because of its industrial uses and its historical role as a store of value. Global industrial demand, especially from the electronics and solar sectors, significantly affects Silver’s price movements.
Although silver has reached a new height of $60.75, we need to be cautious about the immediate bullish momentum. The bearish RSI divergence serves as a key warning that this upward trend might be losing strength, even with new price highs. Therefore, traders should be careful rather than aggressively seeking new long positions.
This warning is also backed by a shaky outlook for industrial demand. Recent manufacturing PMI data from China, a major industrial silver consumer, dropped to 49.8, indicating a slight contraction as we move into the new year. This decline in demand supports the notion that the rally might be overdone.
Additionally, we must take into account the broader economic context. The Federal Reserve has indicated that it will maintain higher interest rates for an extended period. Although US inflation is easing, it still remains above 3%. This situation makes it more expensive to hold a non-yielding asset like silver, which could limit any significant price increases going forward.
Examining relative value, the gold-to-silver ratio has tightened to a historically low level of around 41. This suggests that silver may be overpriced compared to gold. Recall that a similar sharp rise in 2011 was followed by a significant price correction, indicating that a reversal might happen soon.
In the coming weeks, traders should consider strategies that account for this potential pullback. Buying put options near the $56.49 mark could provide a good risk-to-reward opportunity if the price drops below the crucial $60 support. For those holding long positions, selling call options above the $61.50 level could be a wise move to generate additional income while protecting against a possible downside correction.
Market participants expect the US Dollar to rise ahead of the final FOMC event of the year.
The US Dollar went up because investors feel positive about the Federal Open Market Committee’s last meeting of the year. Economic reports, including the ADP report and JOLTS readings, also helped the dollar strengthen.
On December 10, the USD reached close to five-day highs around 99.30, backed by a rise in US Treasury yields. The Fed’s interest rate decision is expected to be crucial, along with upcoming reports about mortgage applications, employment costs, and crude oil stockpiles.
Euro and Pound Under Pressure
EUR/USD struggled, falling for the fourth day in a row. Attention is on speeches from ECB officials since there are no major domestic data releases. GBP/USD dropped below 1.3300, even with strong comments from the BoE, as everyone awaits the RICS House Price Balance report. USD/JPY kept climbing, nearing 157.00, ahead of the Reuters Tankan Index and Producer Prices report. AUD/USD bounced back from a decline on Monday, helped by the RBA’s careful approach, with a jobs report coming up. WTI oil prices dipped to multi-day lows around $58.00 per barrel, influenced by peace talks between Russia and Ukraine and the Fed meeting. In contrast, gold and silver prices increased, with gold hitting $4,200 per troy ounce and silver exceeding $60.00 for the first time. With the Federal Reserve’s last meeting of the year approaching, everyone’s eye is on the US Dollar. Recent strong jobs data, like the JOLTS report showing over 9.2 million job openings last month, supports a hawkish outlook from the central bank. We expect the US Dollar Index (DXY) to test its 200-day moving average, an important technical level that could indicate more strength moving into early 2026.Monetary Policy Divergence
Given the dollar’s momentum, there are opportunities in options on currency pairs like EUR/USD. This pair is testing its 55-day average near 1.1600, and a hawkish Fed could cause it to drop, especially as the European Central Bank takes a cautious approach. The key strategy is to buy put options to benefit from a potential decline while minimizing upfront risk before the announcement. The most significant monetary policy divergence is with the Japanese Yen, as USD/JPY approaches 157.00. In 2023, we saw similar trends when the interest rate gap between US and Japanese government bonds widened, pushing the pair to record highs. The US 10-year Treasury yield is now above 4.75%, while Japanese 10-year yields linger around 1.0%, making long positions in USD/JPY appealing. In the commodities market, low oil prices near $58 per barrel create a complicated situation. While decreasing geopolitical tensions play a role, the Fed’s decision might lower demand forecasts, driving prices further down. The recent EIA report showing a surprising increase in crude oil inventories of 2.1 million barrels supports this bearish outlook, indicating we can use options to bet on more declines. The rise in precious metals presents a major contradiction, suggesting that inflation fears remain strong despite the Fed’s actions. Gold is holding above $4,200 an ounce while the dollar is strong, which is unusual and reminiscent of the economic challenges of the late 1970s. We should maintain positions in gold and silver as a way to protect ourselves against the possibility that the Fed is still lagging on inflation. Overall, we can expect increased market volatility after the Fed meeting. The VIX index, which measures anticipated market volatility, has risen above 20 this week in preparation for the event. The smartest strategy is to use derivatives that can profit from significant price swings, like straddles on major indices and currency pairs, regardless of which way the market moves. Create your live VT Markets account and start trading now.Argentina’s year-on-year industrial output decreased from -0.7% to -2.9% in October.
Stability in Currency Markets
In October, Argentina’s industrial output fell from -0.7% to -2.9% year-over-year. This decline marks a noticeable drop in industrial performance compared to previous months. Global markets have experienced noticeable shifts, too. The People’s Bank of China (PBOC) set the USD/CNY reference rate at 7.0753, slightly down from 7.0773. In currency trading, NZD/USD remains steady below 0.5800, near a one-month high. Meanwhile, concerns about inflation data in China are impacting trading confidence. Gold prices dropped, hovering around $4,200 due to expectations of tighter monetary policy from the Federal Open Market Committee (FOMC). This decline accompanies predictions of a more hawkish Fed stance. Ethereum’s value rose by 6% as whale activity surged ahead of the Fed meeting. The crypto market, with Bitcoin exceeding $90,000, is mixed despite risk-averse sentiments.Economic Outlook for 2026
As we look to 2026, the economic outlook is uncertain due to financial system risks and trade challenges. However, both global and European economies have shown strength against the slowdown of 2025. FXStreet offers various suggestions for currency trading in 2025 while emphasizing the need for careful research due to risks involved. It warns that all investments carry the risk of total loss and emotional distress. With the Federal Reserve set to announce its decision on December 10th, the market anticipates a “hawkish cut.” We expect the dollar to strengthen against the Euro and Pound, as a 25 basis point rate cut is already priced in. The main focus will be on the Fed’s tone about future policies for 2026. This situation indicates an increase in short-term volatility, which is visible in higher option prices expiring this week. A long straddle on the SPY ETF could be a wise strategy, ready to benefit from a substantial market shift after the announcement. Historically, implied volatility (measured by the VIX) often decreases after such events, making it risky to sell premium options right now. The fall in gold prices to $4,200 is a direct reaction to a strong US jobs report from last week, which showed 210,000 jobs added in November, more than expected. This data supports the Fed’s potential hawkish stance, raising real yields and making non-yielding gold less appealing. Derivative traders might think about buying puts on gold futures or related ETFs to bet on further declines. We are also monitoring for signs of stress on the periphery, as Argentina’s industrial output has sharply contracted by 2.9% year-over-year. This reflects the struggles of their economy seen in late 2023 and heightens concerns for emerging markets if the Fed continues a restrictive policy. The upcoming Chinese inflation data will be crucial for traders in commodity-linked currencies like the Australian and New Zealand dollars. With the dollar gaining strength, as USD/JPY reaches 157.00, call options on the UUP (Invesco DB US Dollar Index Bullish Fund) provide a straightforward way to capitalize on the dollar’s upward momentum. This situation reminds us of the 2019 easing cycle when the Fed cut rates but maintained a high threshold for further reductions, resulting in a similar risk-off rally for the dollar. Hedging non-dollar exposure will likely be vital in the coming days. Create your live VT Markets account and start trading now.Gold rises above $4,200 despite strong US jobs report amid expectations of Fed rate cuts
Gold (XAU/USD) rose by 0.57% to $4,213, following a strong jobs report from the US. The report from the US Bureau of Labor Statistics (BLS) indicated an increase in job vacancies, with private companies hiring more than expected.
After this news, expectations for the Federal Reserve to lower interest rates remained high at 88%. On the geopolitical front, Ukraine and Europe are set to present a peace proposal to the US soon, and US-China trade relations appear more favorable.
Market Dynamics and Gold Prices
US Treasury yields held steady, with the 10-year benchmark note at 4.178% and real yields at 1.912%. The US Dollar Index (DXY) increased by 0.16%, reaching 99.26. Despite this, job openings in October rose slightly to 7.67 million. Gold surpassed $4,200, with resistance expected at $4,259 and again at $4,300. If it falls below $4,200, support may be found around $4,149 and $4,083. Gold is historically a store of wealth and is seen as a safe investment during uncertain times. Central banks, which are the biggest gold holders, purchased 1,136 tonnes of gold in 2022, the highest amount on record. Gold usually moves in the opposite direction of the US Dollar and Treasury yields. With gold now above $4,200, the market seems to be ignoring solid labor data and focusing on the anticipated Federal Reserve rate cut tomorrow. This suggests that traders believe prices will continue to rise because lower interest rates are coming. Not even a strong jobs report could shift the market’s strong belief in a rate cut.Federal Reserve Meeting and Market Implications
The Federal Reserve’s meeting tomorrow is crucial for the upcoming weeks. While a rate cut is largely expected, we need to pay attention to Jerome Powell’s press conference and any new economic forecasts for hints about future cuts in 2026. If any slowdown in cuts is hinted at, it could lead to a sharp drop in gold prices. We’ve seen this before, especially during the inflationary period early in the 2020s. The November Consumer Price Index reading of 3.0% gives the Fed a good reason to start easing, despite strong job growth. Additionally, central banks continue to buy gold rapidly, with emerging markets building their reserves at record levels, providing a solid support for gold prices. For traders, this means looking to take advantage of potential upward movements by using call options on gold futures or related ETFs. The current momentum is strong, and any dovish signals from the Fed could push prices to the first resistance level of $4,259. Surpassing that level could put the all-time high of $4,381 within reach. However, there is still a risk of a hawkish surprise from the Fed, making it important to manage risks. Strategies such as buying protective puts or setting tight stop-losses below $4,200 are wise moves. A drop below the 20-day moving average around $4,149 would indicate a loss of bullish momentum. Given the high stakes of the Fed meeting, increased volatility is almost guaranteed. Traders unsure of the market’s direction might consider a long straddle strategy, buying both a call and a put option to profit from significant price movement in either direction after the announcement. In addition to the Fed, it’s important to keep an eye on the geopolitical scene and improving US-China trade relations. While positive news about peace efforts in Europe or new trade agreements may enhance risk appetite, it could also pose challenges for gold. Any significant progress in these areas might temporarily reduce gold’s appeal as a safe-haven asset. Create your live VT Markets account and start trading now.Silver surpasses $60 for the first time, signaling potential for further gains with bullish momentum.
Silver has reached a historic high, trading above $60 for the first time ever. Its value has more than doubled this year, driven by expectations of Federal Reserve interest rate cuts, lower supply, and increased demand. Currently, XAG/USD is around $60.43. The anticipation of a 25 basis point rate cut is helping its rise, though future Fed actions are uncertain.
Geopolitical tensions enhance Silver’s status as a safe investment, allowing it to outperform Gold, which has increased nearly 60% this year. Technically, XAG/USD shows strength and is trading above major moving averages, indicating a bullish trend. This could push Silver towards $61 and higher, with support levels at $59 and between $54-55, which should maintain buying interest.
Momentum indicators also support a positive outlook. The RSI is strong and above 70, while ADX signals a strengthening uptrend. Silver is appealing due to its historical value and role as a hedge against inflation. Factors like geopolitical unrest, interest rates, and the Dollar’s performance influence its price. Industrial demand, especially from the electronics and solar industries, also impacts Silver prices. Additionally, Silver prices often follow Gold, as seen in the Gold/Silver ratio, which helps assess their relative values.
Silver has surpassed the previous highs of $50 from 1980 and 2011, showing exceptional strength above $60. Our immediate focus is the upcoming Federal Reserve decision, as the market has anticipated an interest rate cut. This could create a “buy the rumor, sell the news” scenario if the Fed’s guidance isn’t as supportive as expected.
For those looking to benefit from this upward trend, buying call options is a simple way to capture potential gains towards $61 and beyond. After a remarkable 100% rally this year, implied volatility is likely high, making options expensive. Therefore, using bull call spreads can help reduce the costs while still allowing for profits if prices continue to rise.
However, we must be cautious about a sudden price drop, especially since the RSI is above 70. Buying put options with strike prices around the $57 or $55 support levels can protect our long positions. A hawkish surprise from the Fed could lead to a quick pullback to these points.
This rally is supported by a long-term supply deficit. Reports from the Silver Institute for 2023 and 2024 forecast record industrial demand, particularly from solar panels and 5G technology. This tightening supply suggests that any price drops will likely be seen as opportunities for long-term investors to buy.
Silver’s outperformance against Gold has been a significant trend in 2025, reducing the Gold/Silver ratio from high levels seen in recent years. While Silver’s dual role as an industrial and precious metal has fueled its rise, we should be cautious as this compressing ratio may slow down. The days when Silver was clearly the undervalued precious metal might be over for now.
The New Zealand Dollar stays steady around 0.5780, encountering resistance from US Dollar support.
The New Zealand Dollar is trading below 0.5800, even after three days of gains. It is currently around 0.5780, showing little change, as the US Dollar receives minor support following an earthquake in Japan.
All eyes are on the Federal Reserve, which is expected to announce a 25 basis-point rate cut with careful messaging. Strong trade data from China is also helping the New Zealand Dollar, as exports rose by 5.9% year-on-year in November.
