Gold prices in Pakistan decline, according to recent data.
Gold prices in Pakistan dropped on Thursday, according to FXStreet data. The price for one gram fell to 38,035.42 Pakistani Rupees (PKR), down from 38,211.35 PKR the day before.
The cost for one tola also decreased, now at 443,639.80 PKR, down from 445,689.70 PKR. The price for 10 grams is 380,350.10 PKR, while one troy ounce costs 1,183,071.00 PKR.
Gold prices in India have decreased, according to market information.
Gold prices in India fell on Thursday, according to FXStreet. The price per gram decreased to 12,211.23 INR from 12,267.11 INR. The price per tola dropped to 142,429.30 INR from 143,081.10 INR.
FXStreet updates gold prices every day, reflecting market rates and adjusting international prices to the Indian Rupee. These prices are for reference only, as local rates may vary slightly.
Gold As A Safe Haven
Gold has always been valued as a reliable asset and a way to trade. It’s often seen as a safe haven, a way to protect against inflation and falling currencies. Central banks are key players in gold investment, purchasing 1,136 tonnes in 2022, the highest amount in a single year. Countries like China, India, and Turkey are quickly building their gold reserves. Gold often acts oppositely to the US Dollar and US Treasuries. When interest rates are low, gold prices usually rise; a strong Dollar can keep prices down. Factors that affect gold prices include world instability and economic conditions. Gold is commonly priced in dollars (XAU/USD), so changes in exchange rates can greatly impact its value. The slight drop in gold prices we see today is likely just routine market fluctuations. We believe this is a minor change and not the start of a new trend. Traders should pay attention to broader economic signals in the coming weeks that might influence prices into the new year.Supportive Factors For Gold Prices
Demand from central banks continues to support gold prices, creating a strong base. The record purchases in 2022 and 2023 show a consistent trend of buying from emerging markets. According to the World Gold Council’s latest data for Q3 2025, central banks added another 250 tonnes to their reserves. We are closely monitoring the US Federal Reserve’s position on interest rates. The latest inflation report from November 2025 showed a slight decline to 2.9%, increasing market expectations for a rate cut in early 2026. As gold does not yield interest, it becomes more appealing when expectations for rates are lowered. This is closely linked to the US Dollar, which moves inversely to gold. A weaker Dollar, often resulting from expectations of lower interest rates, can lead to higher gold prices. Any upcoming data that suggests a more dovish stance from the Fed could positively impact gold prices. With uncertainty about when the Fed might adjust rates, we expect increased market volatility. This environment could benefit traders using options to speculate on significant price movements due to key economic data releases. Buying call options could offer a defined-risk strategy to take advantage of potential price increases from a dovish policy shift. Create your live VT Markets account and start trading now.Gold prices decline in Malaysia, according to the latest market data
Gold prices in Malaysia fell on Thursday, according to FXStreet data. The price per gram decreased to 556.04 Malaysian Ringgits (MYR), down from 558.51 MYR the day before.
The price per tola also dropped to MYR 6,485.75, down from MYR 6,514.41. These prices reflect international gold values and are updated daily to stay in line with market changes.
Gold as a Safe Haven
Gold is often seen as a safe investment during tough times, such as when currencies lose value or inflation rises. When there is political instability or worries about the economy, gold prices tend to go up because many people view gold as a secure option. Central banks hold a significant amount of gold. In 2022, they bought 1,136 tonnes, worth about $70 billion. This was the largest annual purchase ever recorded. Countries like China, India, and Turkey are building up their gold reserves. Gold prices usually move in the opposite direction of the US Dollar and other market assets. If the US Dollar loses value, gold prices often rise. Conversely, a strong Dollar can limit gold price increases. Changes in interest rates also influence gold demand; lower rates generally lead to higher prices.Fed’s Impact on Gold Prices
Today, December 11, 2025, gold prices have slightly dropped following yesterday’s Federal Reserve meeting. The Fed decided to cut rates, but the market sees their future guidance as “hawkish,” suggesting there may be fewer cuts in 2026 than anticipated. This has caused the US Dollar to strengthen, which normally puts downward pressure on gold. The Fed’s cautious approach is supported by recent economic data from November 2025. Inflation remains high, with the latest Consumer Price Index report showing a 3.3% annual increase, slightly above expectations. This indicates that the battle against inflation is still ongoing, leading the central bank to avoid signaling major rate cuts anytime soon. However, we should consider the strong long-term trend that has boosted gold prices in recent years. Central banks bought a record amount of 1,136 tonnes in 2022 and continued this trend through 2023 and 2024, aiming to reduce dependence on the US Dollar. This steady demand helps keep prices high and is a key reason why gold is trading at these elevated levels. For traders dealing in derivatives, this situation presents an interesting opportunity as the year comes to a close. The current price drop could be a chance for those who believe that ongoing central bank buying and geopolitical uncertainty will outweigh the Fed’s current position. Selling out-of-the-money put options might allow traders to earn money while betting that gold prices won’t decrease significantly from here. On the flip side, the stronger US Dollar and the Fed’s resolve may lead to more short-term declines for gold. This indicates that implied volatility could rise in the coming weeks as these two forces interact. Traders expecting significant price movements but unsure of the direction may want to consider options strategies that perform well during price swings, such as long straddles. Create your live VT Markets account and start trading now.Despite a Fed rate cut, EUR/USD stays below 1.1700, nearing losses at 1.1690
The EUR/USD pair is trading below 1.1700, currently around 1.1690, despite recent developments like the Federal Reserve’s rate cut and anticipation of the US Jobless Claims data. The Fed has lowered its key overnight borrowing rate by 0.25%, bringing it to a range of 3.5%-3.75%.
Federal Reserve Chair Jerome Powell has indicated that the Fed can now wait and observe economic changes. Currently, the market sees a 78% chance that the Fed will keep interest rates steady next month, based on the CME FedWatch tool. At the same time, the European Central Bank (ECB) is expected to maintain its rates in the next meeting.
Key Economic Figures
It’s important to watch key figures like GDP and inflation, which influence the Euro’s value. When inflation goes over the ECB’s 2% target, rate hikes are likely, which could support the Euro. A strong economy and positive trade balance are also good for the Euro, drawing in foreign investment. The Eurozone’s economy is largely influenced by Germany, France, Italy, and Spain, which together make up 75% of the region’s economy. Thus, data from these countries can significantly impact the Euro’s strength. The current ECB policy appears stable. The Federal Reserve’s recent rate cut to the 3.5%-3.75% range suggests a pause in policy, causing some market uncertainty. As a result, the EUR/USD pair is struggling to break above 1.1700, making this a key point to watch in the coming weeks. The main takeaway is the increasing policy divergence between a Fed that is pausing and an ECB that intends to hold steady. This Fed pause is reasonable since core inflation in the US has remained above 3% for several months. We’ll be keeping an eye on the upcoming US Initial Jobless Claims, with expectations around 215,000, to determine if the labor market is showing signs of cooling. Any significant changes from this estimate could impact the dollar, as the market is pricing in a 78% chance the Fed remains on hold next month.The ECB and US Economic Outlook
In contrast, the ECB has more flexibility because Eurozone HICP inflation has been closer to their 2% target, recently recorded at 2.3% for November 2025. This allows them to confidently keep rates steady, as emphasized by ECB President Lagarde. This stance from the ECB should help strengthen the Euro against the dollar. For derivative traders, this period of inactivity from the central banks may reduce volatility in the EUR/USD pair. Strategies like selling options, such as short strangles, could be effective in this low-volatility, range-bound market near the 1.1700 mark. The expectation is for the pair to trade sideways until clearer signals emerge from upcoming economic data. Historically, the current rate-cutting period marks a significant shift from the aggressive rate hikes we saw throughout 2023, when rates exceeded 5%. Although the Fed has paused for now, the overall trend remains dovish, which typically puts downward pressure on the US dollar. If US growth and employment data weaken, we might see the dollar decline further, potentially allowing EUR/USD to break through resistance in the new year. Create your live VT Markets account and start trading now.Silver price (XAG/USD) drops to about $62 after hitting a record high of $62.87
Silver prices have dropped back to about $62.00 after hitting a record high of $62.87. The Federal Reserve has announced just one interest rate cut in 2026, which keeps the silver outlook stable. The US Dollar Index is trying to recover from a recent low of around 98.50.
Silver’s recent rise faced some challenges, but the outlook remains strong, with possibilities for more monetary easing. The Fed has recently cut interest rates by 25 basis points, bringing the range to 3.50%-3.75%. Future changes will rely on upcoming data.
Fed Chairman Jerome Powell stated that more rate cuts won’t happen soon and predicts the rate will be at 3.4% by the end of 2026. Lower interest rates could help assets like silver that don’t yield interest. The US Dollar Index has slightly increased after its dip, now trading near 98.70.
Silver prices are currently well above the 20-day Exponential Moving Average of $56.24, showing an upward trend. The 14-day Relative Strength Index (RSI) is at 76.52, indicating that silver might be overbought, which could lead to a temporary pullback. If prices close above $62.87, they could rise further toward $65.00.
The recent rise in silver to a record near $62.87, followed by a quick decline, presents a key decision point. The Fed’s rate cut is a positive sign, but their indication of just one cut for 2026 adds a layer of caution. This mixed message is creating uncertainty in the market.
We view the drop to $62.00 as a good opportunity for bullish strategies, thanks to the backdrop of lower interest rates. Recent Q3 2025 reports from the Silver Institute show that industrial demand, especially from the solar and electric vehicle industries, increased by 9% year-over-year, providing support for prices. Purchasing call options with strike prices around $65.00 could be a smart move to take advantage of a continued upward trend.
However, we need to be aware of the overbought signal from the 14-day RSI, which is currently at 76.52. Looking back to spring 2024, a similar RSI reading preceded a 12% price correction over the following three weeks before the upward trend resumed. Traders expecting a larger pullback might consider buying put options with strike prices near the 20-day EMA around $56.00 to make the most of short-term weaknesses.
The Gold/Silver ratio, currently about 68, is slightly above its five-year average, suggesting silver might still be undervalued compared to gold. This high momentum environment, along with the potential for a reversal, makes volatility-based strategies, like straddles, appealing. These strategies would benefit from significant price movements in either direction as the market reacts to the Fed’s long-term outlook.
US Dollar Index hovers around 98.55 following rate cut and jobless claims concerns
The US Dollar Index (DXY) fell to about 98.55 during the Asian session on Thursday. This drop follows the Federal Reserve’s decision to cut the benchmark lending rate by 0.25%. Traders are now looking forward to the release of the weekly Initial Jobless Claims data.
The Fed decreased its interest rate by 25 basis points to a range of 3.50% to 3.75%, making this the third cut since September. Fed Chair Jerome Powell said the central bank is “well positioned” to respond to economic changes without planning immediate rate hikes. As a result, the DXY declined after the Fed communicated a more cautious outlook.
Impact of the Fed Rate Cut
Market forecasts indicate a 78% likelihood that the Fed will keep interest rates steady next month. The weekly Initial Jobless Claims report is expected to show an increase to 220,000 claims. A stronger-than-expected report might help the US Dollar limit its losses. The US Dollar (USD) is the most traded currency in the world, with a daily turnover of $6.6 trillion. Its value is greatly affected by the Federal Reserve’s monetary policies, which aim to manage inflation and employment through interest rate changes. Actions like quantitative easing (QE) and quantitative tightening (QT) by the Fed can also impact the dollar’s value. With the Fed cutting rates for the third time since September, the dollar is weakening around the 98.50 level. The Fed has indicated it will pause for now, signaling a clear policy shift. This dovish approach is key to the currency markets this week. This shift in policy is due to weaker economic data over the past quarter. For instance, Q3 GDP growth was revised to 1.1%, and the latest CPI report for November showed inflation easing to 2.5% year-over-year. These figures create space for the Fed to relax its policy without worrying about rising inflation.Next Steps for Traders
For derivatives, this “wait and see” approach suggests that short-term volatility in interest rates and currencies may decrease. Selling options premiums on currency pairs like EUR/USD or USD/JPY might be a good strategy. Traders could take advantage of a more stable period in the upcoming weeks. The outlook for the US dollar appears to be downward. It would be wise to consider strategies that benefit from this trend, such as buying put options on dollar index futures or call options on major currencies against the dollar. The trend we’ve seen over the last three months seems likely to continue into the new year. The jobless claims data will be crucial; if it exceeds the expected 220,000, it would confirm a weakening labor market. This shift toward easing reflects the aggressive rate hikes experienced in 2022 and 2023. The current economic slowdown was the intended result of that policy. Looking ahead, forecasts suggest only one rate cut in 2026, indicating the Fed does not anticipate a major recession. This means the dollar’s decline might stabilize eventually. Therefore, structuring trades with defined risk, like using put spreads on the DXY, could be a smart move. Create your live VT Markets account and start trading now.After the Fed rate cut, Japan’s Kihara emphasizes the need to monitor the effects of US financial conditions on the economy.
Japan’s Chief Cabinet Secretary, Minoru Kihara, announced that the government will keep an eye on the effects of US financial conditions after the Federal Reserve’s recent rate cut. This news comes as the USD/JPY pair decreased by 0.24%, trading at 155.55.
The Japanese Yen is a key global currency, influenced by Japan’s economic performance and the Bank of Japan’s policies, especially the interest rate differences compared to US bonds and trader sentiment. The Bank of Japan (BoJ) significantly impacts the Yen’s value, affecting currency markets with its policy decisions. Previously, the BoJ’s very loose monetary policy caused the Yen to weaken against other currencies, but this approach is now gradually changing.
Yield Differential Impact
The difference in yields between Japanese and US bonds affects the Yen. The US Dollar gained ground when Japan’s yields were low. However, recent policy changes have started to close this gap. The Yen is also seen as a safe-haven asset, which tends to strengthen during market turmoil as investors seek stability. With the US Federal Reserve cutting interest rates, the long-standing differences in policy that favored the US dollar are beginning to shift. The USD/JPY pair is currently trading around 155.55 as the interest rate gap between the US and Japan decreases. This could signal a change in the trend that has kept the Yen weak for years. Recent US economic data supports this view. The November Consumer Price Index came in at 2.8%, continuing a cooling trend that allowed the Federal Reserve to lower its benchmark rate to 4.50%. In contrast, the Bank of Japan’s rate remains much lower at 0.25%. The crucial point is that the gap between these rates is finally beginning to shrink. For derivative traders, this environment suggests that the best strategy is to prepare for a further decline in USD/JPY. Buying USD/JPY put options allows traders to profit from a stronger Yen while limiting risk to the premium paid. With the Fed starting its easing cycle, we can expect continued downward pressure on this pair in the upcoming weeks.Volatility and Strategy
We should also closely monitor the implied volatility of the Yen. After the Fed’s decision, volatility increased, making options more expensive. This also indicates more uncertainty and potential for larger price swings, strengthening the case for using options to manage risk in what may become a more volatile market. Looking back, we recall the significant weakness of the Yen from 2022 to 2024, when the widening yield gap between the US and Japan pushed USD/JPY to generational highs. What we are witnessing now may be the start of reversing that trend. The first rate cut typically signals a major shift in central bank policy. This change also makes the Yen carry trade—where investors borrow Yen at low rates to invest in higher-yielding US assets—less appealing. As traders unwind these positions, they will need to buy back Yen, which will further strengthen the currency. We should expect this unwinding process to be a key factor in price movements going forward. Create your live VT Markets account and start trading now.The USD/CAD pair appears vulnerable, trading close to its lowest level since late October at around 1.3800.
USD/CAD is currently weak, sitting close to its lowest level since October 22. This situation mainly results from different policies from the Bank of Canada and the US Federal Reserve. The Canadian Dollar finds support from rising oil prices and a tough stance from the Bank of Canada, which signals the end of its rate-cutting phase.
The Bank of Canada has kept its interest rate steady at 2.25%, thanks to positive data from the third quarter that supports economic growth despite trade tensions. This stable rate, combined with hints of potential future rate hikes, stands in contrast to the US Federal Reserve’s recent cut of 25 basis points, with another cut likely in 2026.
US Federal Reserve’s Market Impact
US Federal Reserve Chairman Jerome Powell has expressed concerns about the labor market, suggesting future rate cuts might be on the horizon. This, along with an overall positive market sentiment, reduces the appeal of the US Dollar as a safe haven, negatively impacting the USD/CAD exchange rate. The Canadian Dollar is affected by various factors, including the Bank of Canada’s interest rate decisions, oil prices, and essential economic indicators like GDP and inflation. A robust Canadian economy boosts the currency as it attracts foreign investment and could lead to higher future interest rates from the Bank of Canada. On the other hand, weak economic indicators could weaken the CAD. With USD/CAD struggling below the 1.3800 level, it seems likely to trend downward over the next few weeks. This weakness was reinforced by last week’s report showing that Canadian employment grew by 35,000 jobs in November 2025, while the US Non-Farm Payrolls report fell short of expectations. The bearish sentiment is creating a clear trend that we must heed.Monetary Policy Divergence
The primary driver of this trend is the diverging monetary policies of the Bank of Canada (BoC) and the US Federal Reserve. Currently, the market anticipates a 65% chance of a Fed rate cut in the first quarter of 2026, a big shift from a few months ago. In contrast, the BoC appears to be holding steady, creating a notable policy difference that hasn’t been this significant since the aggressive rate hikes of 2022 and 2023. Additionally, the strong oil prices, essential for the commodity-linked Canadian dollar, put pressure on the pair. Following the recent OPEC+ decision to continue production cuts, WTI crude is consistently above $80 a barrel, a level not seen regularly since early 2025. This strengthens the loonie. For those trading derivatives, this outlook suggests selling out-of-the-money call options on USD/CAD with strike prices at 1.3850 or higher could be a smart strategy for generating income. The pair has struggled to hold gains above this level, making these options likely to expire worthless. Alternatively, buying put options could be an effective way to profit from a potential drop towards the October lows near 1.3700. It’s essential to keep an eye on any shifts in broader market sentiment, as a sudden move to risk-off trading could enhance the safe-haven appeal of the US dollar. The upcoming trade balance figures from both countries may also introduce short-term volatility. A significantly stronger-than-expected US report could temporarily disrupt the current bearish momentum. Create your live VT Markets account and start trading now.WTI crude oil drops to around $58.70 amid peace discussions in Ukraine
During Thursday’s Asian session, West Texas Intermediate (WTI) crude oil prices dropped to $58.70. This decline comes amid ongoing talks about a possible peace deal between Ukraine and Russia.
The U.S. crude inventories fell by 1.812 million barrels last week, surpassing the expected decrease of 1.2 million barrels, according to the Energy Information Administration (EIA). Analysts believe that if the conflict ends, it could stabilize the region’s energy infrastructure, lowering risks and potentially impacting WTI prices.
Federal Reserve Interest Rate Cut
The Federal Reserve has cut interest rates for the third time this year, lowering the federal funds rate by 25 basis points to a range of 3.5%–3.75%. Lower interest rates can boost economic growth and increase oil demand by reducing borrowing costs. WTI, which stands for West Texas Intermediate, is a key benchmark in the oil market, known for its low sulfur content. Prices are influenced by supply and demand, global growth, political situations, and OPEC’s production choices. Weekly inventory reports from the American Petroleum Institute and the EIA play a vital role in determining WTI prices. These reports show supply and demand trends, with inventory changes affecting how the market perceives oil availability. Currently, the market is responding to conflicting signals. The potential peace deal in Ukraine is adding downward pressure on WTI prices, pushing them below $59, despite positive news from the Federal Reserve and EIA. This conflict between geopolitical issues and economic data creates an uncertain environment that we need to navigate carefully in the weeks ahead.Christmas Deadline for Peace Agreement
The Christmas deadline for a peace agreement is the main driver for oil prices as we head into the new year. A successful deal could eliminate the geopolitical risk premium that has influenced energy prices since the conflict escalated in 2022, potentially pushing crude oil prices down to the low $50s. Therefore, we should consider preparing for a further price drop as this deadline approaches. Although the Federal Reserve’s recent rate cut to a 3.5%-3.75% range seems supportive, it is the third cut in 2025, indicating concerns about economic strength. Historically, a series of rate cuts suggests a slowing economy, which could weaken oil demand and limit any price increases. This economic softness should limit any bullish sentiment if the peace talks do not progress. Given the high level of uncertainty, volatility is key to trading. The CBOE Crude Oil Volatility Index (OVX) is currently high, trading around 35, reflecting the market’s anxiety over the outcome of the peace negotiations. A straightforward approach would be to buy put options on January or February 2026 WTI futures contracts to benefit from a possible price drop while capping our maximum risk. The larger-than-expected drop in U.S. crude inventories by 1.8 million barrels provides some price support but may not be enough to counteract the strong geopolitical narrative. We should watch for WTI to test earlier technical support levels, possibly near $55, if momentum for peace talks continues. However, a sudden failure in negotiations could quickly drive prices back up to $65. Create your live VT Markets account and start trading now.PBOC sets the USD/CNY central rate at 7.0686 for the upcoming trading session
The People’s Bank of China (PBoC) has set the USD/CNY central rate for Thursday at 7.0686, lower than the previous rate of 7.0753. The PBoC aims to keep prices stable and manage exchange rates while promoting economic growth through financial reforms.
The PBoC is a state-owned bank guided by the Chinese Communist Party Committee Secretary, not the governor. Currently, Mr. Pan Gongsheng holds both positions, shaping the bank’s policies.
