Pending home sales in the United States increased by 2.6% year-over-year in November. This is an improvement from the previous decrease of 0.4%.
The price of gold retreated sharply after reaching record highs, now holding above $4,300. This was influenced by profit-taking and optimism surrounding a potential Ukraine-Russia peace agreement.
Cryptocurrency Market Update
In the cryptocurrency market, Bitcoin, Ethereum, and Ripple recorded gains of approximately 3%. They gained strength despite thin liquidity, helped by peace talks between the US and Russia.
Looking towards the future, the economic outlook for advanced countries in 2026 appears promising. It is expected that many supportive factors from 2025 will continue to aid economic performance in the subsequent year.
The crypto market in 2026 is anticipated to remain volatile. Positive catalysts included regulatory changes in the US, the rise of Digital Asset Treasuries, and the adoption of AI and tokenization of Real-World-Assets.
Several guides for 2025 highlight the best brokers for various trading interests. These include brokers with low spreads, those specialising in trading EUR/USD and gold, and those offering Islamic and swap-free accounts.
US Pending Home Sales Increase
The recent jump in U.S. pending home sales to 2.6% year-over-year for November is a notable shift, suggesting the housing market may be stabilizing. This strength, after the long interest rate pause we saw through 2024, means we must watch the upcoming Federal Reserve minutes very closely. Any language hinting that rate cuts are on the table for 2026 could trigger significant moves in interest rate futures.
With the year ending in thin trading, market volatility has dropped, similar to how the CBOE Volatility Index (VIX) hovered near a low of 12 in late 2023. Given the optimistic economic forecasts for 2026, this presents an opportunity to sell options premium on stock indices. This strategy allows us to collect income during a quiet period while positioning for potential upside in the new year.
Gold is pulling back sharply from its record peak of $4,550, a price that dwarfs the previous highs around $2,400 we saw back in mid-2024. This retreat is driven by profit-taking and growing optimism about a potential peace agreement between Russia and Ukraine. We could look at buying put options on gold, as a confirmed deal would likely remove much of the geopolitical risk premium that pushed it so high.
The possibility of a peace deal is also affecting the currency markets, weighing on the U.S. dollar’s role as a safe haven. While the dollar is currently stable, a firm resolution to the conflict could strengthen riskier currencies like the euro and pound against it. This suggests positioning for potential dollar weakness heading into the first quarter of 2026.
