Gold prices in Pakistan have stabilized after a recent increase, according to market observations.
Gold prices in Pakistan rose on Wednesday, according to FXStreet data. The price reached 39,223.55 Pakistani Rupees (PKR) per gram, up from 39,184.06 PKR on Tuesday. For a tola, the cost increased to 457,495.80 PKR, up from 457,035.20 PKR the day before.
FXStreet adjusts international gold prices into PKR using current exchange rates and local units of measurement. These prices are updated daily and serve as a guideline, but local rates may vary slightly. Central banks are the largest holders of gold, adding 1,136 tonnes to their reserves in 2022.
The Australian Dollar stays stable against the US Dollar during the New Year’s holiday.
The Australian Dollar stayed steady after China’s Manufacturing Purchasing Managers’ Index (PMI) results came out. The index rose to 50.1 in December, up from 49.2, beating both previous results and market expectations. Low trading volumes were due to the New Year holiday in Australia, causing little movement in the AUD/USD pair, which held its position for two sessions in a row.
Forecasts suggest the Reserve Bank of Australia (RBA) may raise interest rates if inflation continues. Discussions at the RBA centered on possible rate hikes depending on certain conditions by 2026. Minutes from the December meeting indicated a willingness to tighten policies, relying on the upcoming Q4 CPI report on January 28. Analysts anticipate a rate hike at the RBA’s February meeting if core inflation is significantly high.
US Dollar Index Updates
In the US, the Dollar Index remained around 98.20. Minutes from the FOMC hinted at pausing rate cuts if inflation decreases, with an 85.1% chance of maintaining rates in January. US jobless claims dropped to 214K, which was better than the expected 223K. In October, Australia’s inflation hit 3.8%, above RBA targets. A rate hike in February 2026 is being predicted, with banks estimating an increase to 3.85%. The AUD/USD pair approached 0.6700, keeping a bullish trend, while initial support is around 0.6684. The Australian Dollar performed best against the New Zealand Dollar. Due to holiday trading, the Australian Dollar remains stable, boosted by better-than-expected manufacturing data from China. Iron ore futures on the Dalian Commodity Exchange bounced back to over $140 per tonne in December 2025, a level not seen since Q3. This strength in Australia’s biggest trading partner bolsters the currency as we begin the new year. The main factor for the Aussie dollar in the coming weeks will be domestic inflation and the RBA’s response. With inflation consistently above target throughout 2025, attention turns to the Q4 CPI report due on January 28. A strong outcome could solidify expectations for an RBA rate hike at its first meeting of the year on February 3.US Federal Reserve Pause
On the flip side, the US Federal Reserve seems to be pausing after three rate cuts in 2025. The latest Non-Farm Payrolls report from early December 2025 showed job growth slowing to 150,000, which supports the cooling labor market that led to those cuts. Currently, the US dollar lacks new support from its central bank, highlighting a clear policy gap with the RBA. Given the positive technical outlook and a hawkish RBA, buying call options on the AUD/USD appears to be a smart move. This strategy allows for potential profits if prices rise toward the October 2024 high of 0.6727, while limiting risk to the premium paid. It’s best to structure these positions to expire after the February 3 RBA meeting to take advantage of any volatility from a rate hike. The most certain upcoming event is the expected spike in volatility around the January 28 inflation data. This is reflected in the implied volatility for AUD/USD options expiring after that date, which has increased to over 10%. A long straddle strategy—buying both a call and a put option—could capture profits from a large price swing in either direction following the data release. We must also keep an eye on risk management. The technical chart shows an important support line around the 0.6680 level. A significant break below this point would indicate the current bullish trend may be failing, suggesting it’s wise to use put options to protect any long positions. Create your live VT Markets account and start trading now.Gold price rises above $4,350 during early European trading, driven by strong demand and rate cut expectations
US Federal Reserve Action
The US Federal Reserve has lowered interest rates by 25 basis points, setting the federal funds rate to a range between 3.50% and 3.75%. Most Fed officials support more cuts if inflation decreases, but their views on timing and amount differ. There was a slight drop in the likelihood of a rate cut in January. Technical indicators suggest a positive outlook for gold. The 100-day EMA and expanding Bollinger Bands point to upward momentum. Resistance is at $4,520, with further gains possibly reaching $4,550 or $4,600. Support is in the range of $4,305 to $4,300. The Fed changes interest rates to ensure price stability and full employment, which can affect the US Dollar. They use tools like Quantitative Easing and Tightening to manage the economy and influence the dollar’s value. The Federal Reserve has started its easing cycle with a rate cut in December 2025, responding to clear signs of an economy slowing down. Recent reports show that annual inflation has dropped to 2.8%, much lower than previous highs, leading the market to expect further cuts in 2026. This shift in monetary policy supports gold, making it a more appealing asset.Gold Market Strategies
Gold is gaining momentum, having increased by 65% in 2025, far outperforming major stock indices like the S&P 500, which only gained 8% during the same time. Ongoing geopolitical tensions are providing solid support for gold prices. We should consider strategies that benefit from further increases, such as buying call options for February and March 2026 contracts. This approach lets us participate in the rally while managing our risk. However, we need to be cautious of higher margin requirements from the CME. These make it more expensive to maintain long futures positions, which could lead to profit-taking. Historically, sharp price increases, like those in 1979, often result in increased volatility and quick corrections. Thus, we should prepare for potential pullbacks by considering protective put options below key support levels like $4,300. The recent division in the last FOMC vote indicates uncertainty, which is keeping implied volatility in gold options high. The Cboe Gold ETF Volatility Index (GVZ) is around 19, its highest in months, making it attractive to sell options premium. We could consider selling cash-secured puts at lower strike prices or using covered calls on existing long positions to generate income. Recent jobless claims came in slightly higher than expected at 225,000, supporting the idea of a softening labor market, which gives the Fed room to cut rates further. Additionally, the latest Commitment of Traders report from the CFTC shows that speculative funds have their largest net-long position in three years. This heavy positioning could speed up a sell-off if news turns negative, so it’s crucial to set tight stop-losses on any new long trades. Create your live VT Markets account and start trading now.Gold prices in India remained stable with little variation, according to recent data.
Gold prices in India stayed mostly stable on Wednesday, according to FXStreet. The price was 12,553.34 Indian Rupees per gram, up from 12,541.37 on Tuesday.
For tola, the price reached 146,425.10 INR, a slight rise from 146,280.10 INR the day before. FXStreet figures the gold prices by converting global rates (USD/INR) to local currency and standard units.
Gold Buyers and Trends
Central banks are the biggest buyers of gold. In 2022, they added 1,136 tonnes worth about $70 billion to their reserves, the highest annual purchase ever. Many emerging economies, like China, India, and Turkey, have increased their gold holdings. Gold prices often move opposite to the US Dollar and US Treasuries. When the Dollar weakens or interest rates drop, gold usually rises. It’s viewed as a safe asset during tough economic times. Market fears from geopolitical issues and potential economic downturns also drive demand for gold, as it’s seen as a buffer against inflation. As the year ends, gold prices are stabilizing around 12,553 INR per gram after a significant 65% increase throughout 2025, one of the strongest rises since the late 1970s. For traders, this might be a good time to evaluate if the market is preparing for its next move. The main reason for this rally is the expectation of US interest rate cuts in 2026. This belief was strengthened by the US Core PCE inflation data for November 2025, which came in at 2.8%, slightly lower than expected. This may push the Federal Reserve to ease policies. Lower interest rates make it cheaper to hold gold, which doesn’t yield returns.Market Dynamics and Strategy
Strong demand from institutional buyers is providing a solid price foundation. The World Gold Council’s recent Q3 2025 report showed that central banks added 250 tonnes to their reserves, continuing the buying trend from 2022. This steady demand from official sources indicates a long-term commitment to gold. However, it’s essential to recognize that speculative trading has become crowded. Last week’s CFTC report revealed that net long positions by non-commercial traders on the COMEX are at their highest since 2020. This suggests that much of the good news is already priced in, leaving the market open to a short-term decline. In this context, it’s wise to structure trades for early 2026 using options. Buying call spreads can help traders take advantage of potential price increases driven by rate cuts while also managing risk and minimizing costs compared to outright calls. This strategy is effective if we see a gradual rise instead of a sudden surge. The continuing inverse relationship with the US dollar supports gold prices. The US Dollar Index (DXY) has been declining, recently dropping below 98.00 for the first time in over a year. A weaker dollar makes gold cheaper for those using other currencies, generally increasing demand. This situation brings to mind the 2009-2011 period when gold soared due to low interest rates and quantitative easing following the financial crisis. History indicates that as monetary policy stays accommodating, gold’s path is likely to trend upward. Create your live VT Markets account and start trading now.US Dollar Index nears 98.50, rising for two sessions as rate cut pauses are hinted
The US Dollar Index (DXY), which measures the US Dollar (USD) against six major currencies, is rising and trading around 98.30 as of Wednesday morning in Asia. The Federal Open Market Committee (FOMC) released minutes from its December meeting, revealing a split among members. Most agreed to pause further interest rate cuts if inflation falls. The DXY is on track for its largest annual drop of nearly 9.5%, partly due to Trump’s tariffs.
The US Dollar is under pressure due to expectations of two more rate cuts from the Federal Reserve in 2026, impacting interest rates. There are growing concerns about fiscal deficits and the Fed’s independence, which also affect the currency. According to CME FedWatch, there is an 85.1% chance that rates will stay the same at the Fed’s January meeting, up from 83.4%. Meanwhile, expectations for a 25-basis-point rate cut have fallen to 14.9%.
Economic Indicators and Monetary Policy
In December, the Fed lowered interest rates by 25 basis points, setting the target range between 3.50% and 3.75%. In total, the Fed cut rates by 75 basis points in 2025 due to a slowing labor market and ongoing inflation. Quantitative easing (QE) usually weakens the US Dollar, while quantitative tightening (QT) can strengthen it. The latest Fed minutes indicate a pause in rate cuts, which contradicts the narrative of a weak dollar that has prevailed in 2025. This creates uncertainty, and traders should be aware that the dollar’s downward trend might slow or reverse in the short term. If this happens, options that benefit from increased price fluctuations could become more valuable. The labor market has cooled in 2025, with the unemployment rate rising to 4.1% in November from a low of 3.8% earlier in the year. However, core inflation remains stubbornly above the 2% target, recently recorded at 2.8%. This mixed data supports the Fed’s divided outlook, suggesting the dollar might strengthen if the market believes rates will remain high for a longer period than anticipated. Despite recent gains, it’s worth noting that the US Dollar Index is still expected to end the year down nearly 9.5% due to the earlier 75 basis points cut in 2025. The current rise to 98.30 may be a temporary reaction rather than the start of a longer upward trend. As a result, derivative positions should be balanced to prepare for both a potential short-term rally and a possible return to broader weakness.Market Volatility and Currency Pair Futures
The clear divisions within the Federal Reserve and the political uncertainty over a new Fed Chair in early 2026 indicate increased market volatility. We’ve already seen implied volatility in one-month EUR/USD options rise from the lows of the fourth quarter. This suggests that hedging strategies or positions that profit from price fluctuations will be important in the early weeks of 2026. In the interest rate futures market, traders are quickly reducing expectations for the two additional rate cuts anticipated for 2026. This shift could lead to further strength in the US Dollar against currencies like the Japanese Yen, which still has an accommodating central bank policy. Keeping an eye on changes in interest rate differentials will be crucial for finding opportunities in currency pair futures. Create your live VT Markets account and start trading now.Gold prices in Malaysia have risen, according to recent data analysis.
Gold prices in Malaysia are on the rise. Currently, Gold is priced at 566.93 Malaysian Ringgits (MYR) per gram, up from 566.32 MYR the day before. The price for a tola also increased, going from 6,605.40 MYR to 6,612.48 MYR.
FXStreet calculates Gold prices in Malaysia by adjusting international rates (USD/MYR) to local currency and units, updating this daily. Remember, actual local prices may vary.
Gold As A Safe Haven Investment
Gold has long been viewed as a reliable store of value and a safe-haven investment. It helps protect against inflation and currency declines since it doesn’t rely on any single issuer. Central banks, which are the largest Gold holders, added 1,136 tonnes to their reserves in 2022, worth about $70 billion. Countries such as China, India, and Turkey are increasing their Gold reserves. Gold tends to rise when the US Dollar weakens and is often favored in times of market uncertainty. Political instability and fears of a recession can drive up Gold prices, especially when interest rates are low and the US Dollar is strong. As we approach January 2026, the focus is on Gold’s strong upward trend. Prices are climbing because it’s expected that the US will lower interest rates soon. The momentum from late 2025 suggests that bullish positions on Gold derivatives may be beneficial.Trading Strategies For Gold
It’s important to consider the strong demand driving this rise. Central banks have been major buyers of Gold for years, especially after purchasing a record 1,136 tonnes in 2022. This trend continued with robust buying through 2024 and 2025, creating a solid base for Gold prices. A key factor is the market’s expectation of looser monetary policy from the US Federal Reserve. Following sharp interest rate hikes in 2022-2023 and the pause that came afterward, recent inflation data suggests the Fed may shift focus to boosting economic growth. Lower interest rates make holding Gold more appealing as they reduce the opportunity cost. In the coming weeks, we should consider trading strategies to profit from this upward trend. Buying call options on Gold futures or major Gold ETFs for early 2026 can be a direct way to take advantage of the expected price rise. These options offer leverage, supporting the idea that rate cuts will keep pushing Gold higher. However, we should also be cautious after the impressive 65% price increase in 2025. Rapid gains can lead to short-term corrections as traders take profits. We can manage this risk by using put options to protect long positions or by setting clear exit points for our trades. The currency markets also impact our strategy. Although the US Dollar has recently strengthened against currencies like the Euro and British Pound, many expect it to weaken if rate cuts occur. Any unexpected delays in these cuts could strengthen the Dollar temporarily, posing challenges for Gold prices. Create your live VT Markets account and start trading now.Russell 2000 futures suggest a bullish trend with potential for more upward movement
Russell 2000 futures (RTY) have hit a new all-time high, showing the market is moving upward. The trend started from the low in April 2025 and is now advancing as an impulse wave. Wave ((4)) ended at 2300.6, and wave ((5)) has begun with a strong structure.
Wave Patterns and Corrections
After wave ((4)), the index climbed in wave ((i)) to 2396.4, followed by a small pullback in wave ((ii)) to 2370.3. The index then surged in wave ((iii)) to 2545.8, with a brief consolidation in wave ((iv)) at 2516.6. Wave ((v)) took the index up to 2625, completing wave 1 at a higher level. Currently, we are in a corrective wave 2, retracing from the low on November 21 in a zigzag pattern. From the peak of wave 1, wave ((a)) fell to 2526.2, then wave ((b)) bounced back to 2590.3. Wave ((c)) is expected to drop lower towards the 2397–2471 range, which corresponds to the 100%–161.8% Fibonacci extension of wave ((a)). This area is likely to provide support for completing wave 2. If the pivot at 2300.6 holds, we could see more buying opportunities in the next 3, 7, or 11 swings, allowing the upward trend to continue. The Russell 2000 (RTY) has confirmed a strong bullish trend with a breakthrough to a new all-time high of 2625. We are currently experiencing a corrective pullback, which looks like a typical Wave 2 retracement. This is seen as a temporary pause and a potential buying opportunity, rather than the start of a new downtrend. For the coming weeks, our plan is to look for this correction to find support in the 2397–2471 price zone. This area is a key Fibonacci extension target for the current A-B-C pullback structure. As long as the price stays above the critical pivot of 2300.6, we expect buyers to step in.Economic Environment and Strategy
This positive outlook is supported by recent economic data, which shows Q4 2025 GDP growth surprising us at an annualized 2.9%, along with easing inflation rates. The Federal Reserve’s pause on interest rate hikes in the latter half of 2025 has also created a favorable climate for smaller, domestically focused companies. These factors strengthen the fundamental basis for the index’s upward trend. Historically, small-cap stocks have often shown a “January Effect,” outperforming their larger counterparts at the start of the new year. For example, in the years following the market lows in 2020 and 2009, January saw strong investments in small-cap stocks as investor confidence returned. This trend suggests that the current dip may set the stage for a rally in early 2026. For derivative traders, this means we should be ready to take bullish positions as RTY reaches our target support zone. Selling out-of-the-money put credit spreads below 2397 could be a useful strategy for collecting premium while managing risk above the 2300 pivot. Alternatively, we could wait for signs of a bottom before buying call options or futures contracts, anticipating the next significant upward movement. Create your live VT Markets account and start trading now.Silver price (XAG/USD) falls to around $72.50 after CME raises margins
Silver prices have faced pressure due to the CME raising margin requirements on Silver futures. The price has fallen to around $72.50, losing a 4.5% gain from the previous session. This decline is more about traders adjusting their positions than a drop in Silver demand.
Even with this drop, Silver is still expected to see over a 150% annual gain in 2025. This forecast is driven by geopolitical tensions, potential US interest rate cuts, and strong demand from the solar and electronics sectors. High demand in China has pushed premiums on the Shanghai Futures Exchange to record highs, indicating strong local demand and impacting global supply chains.
Minutes from the Federal Open Market Committee (FOMC) meetings suggest they may pause rate cuts if inflation decreases. Previous cuts aimed to support the labor market. Demand for Silver has increased as a safe haven amid geopolitical tensions, like uncertainties over the Russia-Ukraine peace talks and issues in the Middle East.
Silver’s industrial uses greatly influence its price, particularly from the electronics and solar sectors. Tariffs from US President Trump, geopolitical worries, and interest rate cuts have helped lift Silver prices. Often, Silver and Gold prices move together, and factors like the strength of the US Dollar, investment demand, and mining supply impact their changes.
The recent dip to about $72.50 is mainly due to the CME’s margin increase, not a fundamental market change. This has forced some leveraged traders to exit, creating a temporary pricing dislocation. The underlying demand that pushed Silver prices up over 150% in 2025 is still strong.
With implied volatility rising, we view selling out-of-the-money puts for January and February as an attractive strategy. This lets us collect higher premiums while setting a lower entry point to invest in this bull market. For example, data from the Cboe shows Silver volatility is now at its highest levels since the market surge in 2020.
It’s important to note that industrial demand for Silver is stronger than ever, shielding it from changes in monetary policy. The Silver Institute’s upcoming 2025 report is expected to reveal that demand from solar PV installations alone used over 240 million ounces, a nearly 25% increase year-over-year. This steady demand provides a solid price foundation that wasn’t present in earlier bull markets.
The FOMC’s discussions about pausing rate cuts are now the key risk to watch in the first quarter of 2026. Although the Fed has already cut rates three times in 2025, the Consumer Price Index (CPI) report for December will be crucial. If the mid-January CPI report comes in below the recent trend of 3.2%, it might lead the Fed to hold off on further cuts, capping Silver’s rally.
We are also keeping an eye on the gold-to-silver ratio, which has narrowed significantly during this bull run. Starting 2025 near 85, the ratio is now approaching 60, its lowest in several years. While this indicates Silver’s strong performance, traders should be cautious, as a return to historical averages could favor Gold in the short term.
The EUR/USD pair struggles to break above 1.1800, hitting a low near 1.1740.
The EUR/USD has dropped to a new weekly low of about 1.1740 as the US Dollar remains stable. Although the US Dollar index hit a weekly high near 98.25, most members of the Federal Open Market Committee (FOMC) support interest rate cuts if inflation decreases as expected.
The FOMC minutes highlighted the importance of returning to a neutral policy to avoid job market issues. The CME FedWatch tool is predicting a 50 basis points cut in interest rates by the Fed in 2026. In contrast, the Eurozone’s activity is subdued, with the European Central Bank (ECB) likely to keep interest rates steady, as Eurozone inflation stays close to the 2% target.
Technical Analysis Overview
Currently, EUR/USD is trading at 1.1744, above a rising 20-day EMA at 1.1724, showing a positive short-term trend. The RSI is at 58, indicating strong momentum. Although there has been a decline from recent highs, things look encouraging as long as the price remains above the 20-day EMA. The Federal Open Market Committee meets eight times a year to discuss economic conditions. The FOMC Minutes, published three weeks after a policy decision, can impact the US Dollar, often with market reactions being delayed as traders await the information. With EUR/USD around 1.1740, we are seeing a clear standoff between central banks as we move toward 2026. The Federal Reserve is openly discussing interest rate cuts to support the US job market, while the ECB appears ready to maintain its current stance for now. This difference in policy will be central in the upcoming weeks. The November 2025 jobs report showed US payrolls grew by just 150,000, below expectations, giving the Fed more justification to ease its policies. With US inflation dropping to 2.8% in recent readings, there is minimal pressure for the Fed to remain aggressive.Eurozone Stability and US Policy
On the other hand, the Eurozone looks more stable, which supports the Euro. Recent Eurostat data shows inflation steady at 2.1%, close to the ECB’s target. This reduces any immediate need for the ECB to consider rate cuts, creating a strong case for a stronger Euro compared to the Dollar. From a trading perspective, this suggests favoring bullish strategies on the EUR/USD. The key support level is 1.1724; as long as we stay above it, buying call options with strikes above the 1.1800 resistance could be wise. The low trading volume at the year’s end often leads to lower implied volatility, making options appealing. Historically, after the aggressive rate hikes of 2022 and 2023, a shift to easing policies has weakened the Dollar. Current market expectations, with indications of at least two rate cuts in 2026 from the CME FedWatch tool, support this view. Thus, preparing for a possible increase in EUR/USD in early January seems reasonable. Traders should be aware that the pair is having a tough time moving up. A drop below the 20-day moving average at 1.1724 would suggest that this bullish outlook may be too early, prompting a likely period of consolidation. The first full trading week of January 2026 will be crucial to see if buying interest returns with stronger market participation. Create your live VT Markets account and start trading now.Gold rises over $4,350 during Asian trading due to US rate cut expectations and tensions
Gold prices jumped sharply during early Wednesday in Europe, driven by expectations for US interest rate cuts and ongoing geopolitical tensions. The price surpassed $4,350, showing a remarkable 65% increase this year, the largest annual rise since 1979. This increase is fueled by anticipated US interest rate cuts in 2026, which could make holding gold less costly.
Geopolitical issues like the tensions between Israel and Iran, and the disputes between the US and Venezuela, may increase demand for gold. Investors often buy gold as a safe option during uncertain times. However, higher margin requirements from the CME Group and advancements in Ukraine peace talks could lead to profit-taking, which might limit gold’s gains.
