In January, the Australia RBA Commodity Index SDR rose to 2.6% from -3.8% previously
The Australia RBA Commodity Index for Special Drawing Rights (SDR) improved in January, shifting from a 3.8% decline last year to a 2.6% gain. This is a positive change for Australia’s commodity market.
The USD/CHF is currently around 0.7730 as the market waits for the US ISM PMI data. In contrast, the EUR/USD is low due to cautious market sentiment, with a busy week ahead.
The recent crash was analyzed as a technical inevitability rather than just bad luck.
The recent market crash is examined through the lens of Elliott Wave theory, indicating it was not just a random event. Key points include the technically-driven actions of the Nifty and Bank Nifty, showing they were not purely incidental.
The “STT Shock” is investigated to clarify its predictable nature in market charts. Analysts are questioning if the recent price rebound might be misleading, by distinguishing between impulsive and corrective structures.
Critical Support Zones
For ITC, critical support levels are found between 410 and 450, based on Wave 5/ABC scenarios. Waaree Energies is analyzed with a focus on support around 2400 to 2500, suggesting that caution is needed before taking a bearish position. The analysis also looks at potential market trends, including sell-offs in gold and silver. Discussions continue about the weak Australian dollar and fluctuating oil prices due to geopolitical tensions, especially noting interventions in the USD/INR that favor its rise. Editor’s picks feature movements in EUR/USD and GBP/USD, alongside a market dip in bitcoin. Recommendations for top brokers in 2026 are also included. This information is for educational purposes, reminding readers of the risks involved and the importance of doing thorough research before making any financial decisions.Market Trends and Strategy
The recent crash, spurred by the STT shock, was a technical occurrence we anticipated from the charts, rather than mere bad luck. The sharp decline in the Nifty 50 during January 2026 caused the India VIX to rise above 25, signaling a level of fear not seen since the uncertainty of the 2025 general elections. This suggests that high volatility will likely continue in the following weeks. We see the current bounce in the Nifty and Bank Nifty as a potential trap or a corrective wave, not the start of a new, sustainable rally. For derivatives traders, this means using any surge to cautiously build short positions, such as buying puts or selling out-of-the-money call spreads. The market structure indicates another downward move is more likely than reaching new highs. This bearish outlook is supported by the ongoing strength of the US dollar, which puts stress on emerging markets. Reflecting on 2025, we observed how a rising dollar led to significant capital withdrawal from Indian equities. Recent data for January 2026 shows this pattern repeating, with foreign investors removing over $3 billion from the cash market. The ongoing sell-off in gold and silver indicates a risk-off mentality, where traders are favoring the safety of the US dollar. Gold’s failure to maintain crucial support levels, despite geopolitical issues that should normally strengthen it, serves as a crucial warning for risk assets. This reinforces our cautious approach toward the broader market indices. In terms of specific stocks, ITC is testing a key support level between 410 and 450. If it fails to maintain this range, it could see a sharper decline, making protective puts a viable strategy. Similarly, Waaree Energies needs to hold its 2400-2500 support to avoid a more significant correction. Currently, exercising patience is the best strategy before becoming aggressively bearish. Implied volatility is high, making option premiums costly for buyers. We will watch for this bounce to lose steam before establishing larger short positions through index futures and puts, aimed for late February and March expiries. Create your live VT Markets account and start trading now.GBP/USD remains stable near 1.3695 during the early Asian session as traders evaluate Fed leadership
The GBP/USD pair is holding steady at around 1.3695 during the early Asian session on Monday. Traders are paying close attention to possible changes under Kevin Warsh’s leadership at the Federal Reserve and the upcoming ISM Manufacturing PMI report from the US.
US President Donald Trump has nominated Kevin Warsh to lead the Federal Reserve. Warsh’s possible strategies may include a smaller Fed balance sheet and higher interest rates, which could strengthen the USD against the GBP.
GBP vs. USD Performance
The GBP recently reached its highest level against the USD in four years, hitting around 1.3870 before dropping back. This recent rise is connected to the overall performance of the USD and concerns about Trump’s unpredictable foreign policy and his criticisms of the Federal Reserve. Tensions are building around anticipated Fed policy changes, especially since Trump has threatened to impose 100% tariffs on Canada if it moves forward with a trade deal with China. Additionally, the USD is facing challenges due to low consumer confidence, which fell to 84.5, the weakest level in over 11.5 years. FXStreet continues to provide valuable insights into the currency market, helping traders understand shifts caused by geopolitical events and central bank policy changes.Current Market Dynamics
As of February 2, 2026, the GBP/USD pair shows a very different market dynamic compared to 2018. The erratic shifts caused by unexpected policy announcements have given way to a more focused analysis of economic data. The pair is now trading within a tighter range, benefiting from clearer guidance from central banks. The US dollar’s strength is bolstered by strong economic data, a sharp contrast to the uncertainty seen in the past. For instance, the latest Non-Farm Payroll report revealed the US added an impressive 353,000 jobs, pushing the unemployment rate down to 3.7%. This strong performance eases immediate pressure on the Federal Reserve to lower interest rates. On the other hand, the Bank of England faces challenges that could support the pound. UK inflation remains high, holding steady at 4.0%, significantly above the central bank’s target. This persistent inflation could compel the Bank of England to maintain a tighter monetary policy longer than the Fed. For derivative traders, the growing differences between US and UK monetary policies will be crucial in the upcoming weeks. We expect increased volatility, making options trading a potentially beneficial strategy. This approach allows traders to capitalize on a possible breakout in GBP/USD without the risk of guessing the wrong direction in a volatile market. Create your live VT Markets account and start trading now.Gold prices in Saudi Arabia decline, according to recent data
Gold prices in Saudi Arabia dropped on Monday, according to FXStreet’s data. The cost per gram fell to 560.57 Saudi Riyals from 585.06 SAR last Friday. Additionally, the price per tola decreased from 6,823.99 SAR to 6,537.60 SAR.
FXStreet updates gold prices daily by adjusting international rates to local currency and measurement units. The prices listed are for reference, and local variations may occur.
Gold as a Safe Haven
Gold is valued for both jewellery and as a safe-haven asset, especially in uncertain times. It serves as protection against inflation and currency decline, without relying on any government or issuer. Central banks are major gold buyers, seeking to strengthen their currencies and stabilize their economies. In 2022, they purchased a record 1,136 tonnes of gold, costing around $70 billion. Gold typically moves in the opposite direction of the US Dollar and US Treasuries. When the dollar falls, gold prices usually rise. Factors such as political instability, recession fears, and interest rates also impact gold prices, with the strength of the US dollar playing a crucial role. Currently, gold is experiencing a slight decline, reflecting the recent strength of the US Dollar. This follows last week’s Federal Reserve comments, which suggested a pause in rate cuts seen in the latter half of 2025. As a result, there’s short-term pressure on gold, indicating that aggressively buying call options might be premature.Gold Market Strategies
Despite the dip, gold has strong support from institutional investors. Central banks worldwide added a record 1,210 tonnes to their reserves in 2025, with early trends suggesting this buying trend continued into January 2026. Such demand could create a price floor, making significant drops potential buying opportunities for futures contract holders. Upcoming inflation data will be crucial. After core inflation dropped to 2.8% in the last quarter of last year, there are worries about a possible rise that could validate the Fed’s cautious approach. If inflation remains high, gold’s appeal as a non-yielding asset may diminish, making put options a smart hedge against existing long positions. Additionally, the late 2025 equity rally appears to be losing momentum, with the S&P 500 fluctuating within a narrow range. A decline in risk assets may lead to a move towards safe-haven investment, benefiting gold. With these mixed signals, strategies that take advantage of a volatility spike, like a long straddle, could be wise. Geopolitical instability continues to support gold prices. Any increase in global tensions might lead to a quick rise in gold, penalizing traders with short positions. This supports the idea that using options to express a bearish stance is safer than shorting futures outright. Create your live VT Markets account and start trading now.With declining oil prices, USD/CAD strengthens to about 1.3660 during the Asian session
The USD/CAD pair may strengthen as the US Dollar gets support from cautious views on Federal Reserve policy. President Trump has nominated Kevin Warsh for Federal Reserve Chair, hinting at possible monetary easing.
Federal Reserve Stance
Federal Reserve officials are being patient. St. Louis President Alberto Musalem believes there should be no further interest rate cuts, while Atlanta President Raphael Bostic favors a slightly tight policy. The US Dollar gains support from a positive risk outlook after the US Senate struck a deal to advance a government funding package, preventing a potential shutdown. The Canadian Dollar is affected by several factors, including Bank of Canada interest rates, oil prices, economic health, inflation, and trade balances. Changes in interest rates, oil prices, and economic data are crucial for the CAD’s value. The relationship between the US and Canadian dollars is pivotal, with USD/CAD currently at about 1.3780. This strength is mainly due to a growing gap in monetary policy expectations between the Federal Reserve and the Bank of Canada. Recent US non-farm payroll data was much better than expected, suggesting the Fed might keep interest rates higher at 5.00% for a longer time.Commodity and Currency Trends
Meanwhile, the commodity-linked Canadian dollar faces challenges from a weaker oil market. West Texas Intermediate crude has dropped from over $80 a barrel to about $78 lately, impacted by predictions of increasing non-OPEC supply through 2026. This trend continues to put pressure on the loonie, given Canada’s role as a major energy exporter. The difference in interest rates is becoming more significant, providing a boost for the USD/CAD pair. Canada’s latest inflation rate eased to 2.5%, nearing the Bank of Canada’s target and increasing the chances of a rate cut later this year from the current 4.25%. This stands in sharp contrast to the economic strength seen in the United States. Looking back at 2025, we saw similar trends despite different numbers. At that time, USD/CAD was around 1.3650 while oil prices dipped to nearly $62 a barrel. The Fed’s policy rate was in the 3.50%-3.75% range, but like today, oil prices and central bank outlooks were key drivers. With expectations of further USD/CAD strength, there’s an opportunity to buy call options. A potential strategy is to purchase March 2026 calls with a strike price close to 1.3850. This would enable traders to benefit from an upward movement while controlling downside risk. Another strategy involves using options on crude oil to target the correlated weakness in the Canadian dollar. Buying WTI put options expiring in April 2026 could effectively profit from further drops in energy prices. This trade directly bets on a crucial factor currently affecting the Canadian economy and its currency. Create your live VT Markets account and start trading now.HSBC records India’s Manufacturing PMI at 55.4, missing market expectations
**Gold Prices and Market Dynamics**
Bitcoin’s value has fallen below $75,000, showing a decline of more than 11% from last week. The overall cryptocurrency market is trending down, with hints that it may drop further to around $70,000.
Most central banks in both developed and emerging markets have kept their interest rates steady. Countries like Canada, Sweden, Brazil, and Chile made no changes to their monetary policies. Meanwhile, strong GDP growth in the Eurozone has led the European Central Bank to also maintain its current rates.
In India, the manufacturing sector is slowing down. January’s PMI reading is at 55.4, which is below expectations. This change follows a stronger phase at the end of last year. This slowdown could weaken the Indian Rupee. As a result, strategies like call options, which benefit from an increasing USD/INR exchange rate, seem promising.
**USD Influence on Market Trends**
The primary factor in the market right now is the strong US Dollar, which remains above the 97.00 level on the index. This increase is mainly driven by expectations of a tougher stance from the Federal Reserve after the recent appointment of its new chair. The upcoming US ISM manufacturing data will be essential, especially since the sector has struggled for much of 2025.
The strength of the dollar is impacting commodities, leading to gold prices hitting a three-week low. After the significant increase in gold prices seen in 2025, this downturn seems to have gained traction. We should consider bearish strategies like put options or shorting futures on both gold and silver.
Other major assets are also feeling the pressure, with the Euro and Pound Sterling dropping against the dollar. A similar cautious approach is apparent in cryptocurrency, where Bitcoin’s decline below $75,000 continues the sharp correction from last week. This widespread weakness indicates a major shift in the market.
In the next few weeks, the best strategy is to prepare for the dollar’s continued strength against various other assets. This means anticipating declines in major currency pairs, commodities, and riskier assets like Bitcoin. Given the potential for volatility, using options could help manage risk while taking advantage of these evident trends.
Create your live VT Markets account and start trading now.
Gold prices in the Philippines decreased today, showing a downward trend based on compiled data.
On Monday, gold prices in the Philippines dropped, according to FXStreet. The price per gram decreased to 8,817.95 Philippine Pesos, down from 9,188.20 Pesos on Friday.
The price of gold per tola also fell to 102,859.90 Pesos, down from 107,169.30 Pesos. FXStreet updates prices every day, converting international rates into local amounts.
Gold As A Safe Haven Asset
Gold is often seen as a safe investment and a way to protect against currency drops and inflation. This is because it has a long history as a medium of exchange and a store of value. Central banks buy gold to diversify their reserves and strengthen economic stability. In 2022, such holdings increased by 1,136 tonnes. Gold usually rises when the US Dollar weakens. Prices are also affected by market risk and events around the world. When interest rates go down, gold prices typically go up. On the other hand, a strong Dollar might lower gold prices. Currently, we are observing a slight dip in gold prices, which might create a chance for traders. This minor decrease should not be seen as a trend change but as a temporary pause after a steady rise. For traders dealing in derivatives, this is more of an opportunity to invest rather than a signal to sell.Underlying Support For Gold
The support for gold is still robust, especially considering the actions of the Federal Reserve. The Fed paused its rate cuts in late 2025, creating some uncertainty about the future of interest rates. This pause has led to a slight strengthening of the US Dollar Index to around 104.5, which has temporarily affected gold prices. However, any hint of economic weakness could quickly change this situation. Gold’s role in times of instability remains crucial. Ongoing geopolitical tensions and new inflation concerns, driven by supply chain issues from the last quarter of 2025, are keeping gold prices stable. In this context, buying long-term call options seems wise to take advantage of potential gains from unexpected economic troubles. Additionally, it’s important to note the significant demand from institutions, especially central banks. Following record purchases in 2022 and 2023, emerging markets have continued to aggressively build their gold reserves throughout 2024 and 2025. Reports show over 1,000 tonnes added each year. This consistent buying offers strong support, making strategies like selling out-of-the-money puts appealing for earning premiums. Create your live VT Markets account and start trading now.Gold prices drop in the United Arab Emirates, according to recent data analysis
Gold prices in the United Arab Emirates fell on Monday. According to FXStreet, the price for one gram of gold dropped to 548.72 AED, down from 572.84 AED on Friday. The price for a tola also decreased to 6,400.81 AED from 6,681.54 AED.
FXStreet updates global gold prices daily, adjusting them to local currency and units based on market rates. While these prices serve as a guide, local rates may vary.
Gold As A Safe Haven
Gold has long been seen as a reliable store of value and a medium of exchange. It is a safe-haven asset, especially during unstable times, and helps protect against inflation and the decline of currency value. In 2022, central banks, the largest holders of gold, bought 1,136 tonnes, marking the highest annual purchase on record. Countries like China, India, and Turkey are quickly building their gold reserves. Gold prices typically move in the opposite direction of the US Dollar and US Treasuries. Factors like geopolitical instability, fears of recession, and interest rates affect its price. Usually, lower interest rates lead to higher gold prices. A weak Dollar tends to push gold prices up, while a strong Dollar keeps them lower. With the recent drop in gold prices, traders may find a chance to enter the market. This decrease is likely a short-term change, not a shift in the overall trend. We should see this price drop as an opportunity to invest for the medium term.Favorable Economic Environment For Gold
The economic climate is becoming more favorable for gold. After a year of holding rates steady through 2025, the Federal Reserve is signaling possible rate cuts later this year as economic growth slows down. Gold, which does not earn interest, becomes more appealing when rates are expected to decrease. This shift in policy is affecting the US Dollar, with the Dollar Index (DXY) falling from its late 2025 highs and now sitting around 101. This decline makes gold cheaper for holders of other currencies. Historically, this inverse relationship has boosted gold’s appeal. We also need to consider strong institutional demand that supports prices. After record purchases in 2022, central banks continued buying, adding over 1,000 tonnes to their reserves in 2025. This ongoing demand, especially from emerging economies, indicates a global trend towards gold as a key reserve asset. Meanwhile, riskier assets are becoming less reliable after last year’s strong gains. With high equity valuations and lingering recession fears from late 2025, the case for safe-haven assets is growing. Gold’s role as a portfolio diversifier becomes especially important in this climate. For derivative traders, this suggests selling out-of-the-money puts or establishing long call spreads on gold futures could be wise. These strategies allow us to take advantage of the expected upward trend in the coming weeks, using the recent price drop as a good entry point. This approach benefits from strong fundamental support while managing risk. Create your live VT Markets account and start trading now.Gold prices in Pakistan decreased today according to data from multiple sources.
Gold prices in Pakistan dropped on Monday, according to FXStreet data. The price fell to PKR 41,963.05 per gram, down from PKR 43,921.50 on Friday. For per tola, the price decreased to PKR 489,400.30 from PKR 512,291.70.
Here are the current gold prices:
– 1 gram: PKR 41,963.05
– 10 grams: PKR 419,584.80
– 1 tola: PKR 489,400.30
– 1 troy ounce: PKR 1,305,579.00
FXStreet updates these prices daily, converting them from international rates (USD/PKR) to local currency.
Gold’s Role and Market Dynamics
Gold is considered a safe investment, especially during uncertain times. It does not rely on any government or issuer. Central banks are the biggest holders of gold, acquiring 1,136 tonnes in 2022, marking a record high. Gold usually rises when the US Dollar weakens. Additionally, fears of political instability or a recession often drive up gold prices since it is seen as a safe haven. This summary was created using an automated tool. Currently, local gold prices are temporarily lower. This seems linked to currency fluctuations rather than a change in gold’s basic value. This dip might be a good chance for derivatives traders, especially considering the overall economic landscape. It’s important to look beyond short-term changes and focus on the main factors influencing international prices. The US Federal Reserve recently decided to keep interest rates steady in its January 2026 meeting. This pause follows a series of rate hikes in 2025 aimed at reducing inflation, which peaked at 4.5% that year. A stable or lower interest rate makes gold, which doesn’t earn interest, more attractive.Effects of US Dollar and Central Bank Demand
As a result, the US Dollar Index (DXY) has decreased from around 107 in late 2025 to about 103.5 now. A weaker dollar benefits gold since it is priced in USD in global markets. This negative correlation is crucial for our strategy with call options and long futures positions. We must also consider strong demand from institutional investors. Central banks made significant purchases in 2025, adding 240 tonnes to their reserves in the last quarter alone, according to the World Gold Council. This ongoing demand supports gold prices and shows a strong belief in gold’s long-term value. Finally, worries about a possible economic slowdown are rising again after last year’s monetary tightening. While the US narrowly avoided recession in 2025, recent manufacturing PMI data from January 2026 indicates a slight contraction, enhancing gold’s allure as a safe haven. This uncertain environment supports a positive outlook in the coming weeks. Create your live VT Markets account and start trading now.Core inflation in Indonesia hits 2.45% year-on-year, surpassing the expected 2.37%
Indonesia’s core inflation rate rose to 2.45% in January, higher than the expected 2.37%. This increase shows changes in the country’s economy and how consumers are behaving.
At the same time, international markets are experiencing ups and downs. For example, Bitcoin’s price fell below $75,000, representing an 11% drop from the previous week.
