South Korea’s industrial output in November fell below expectations, with a year-on-year decrease of 1.4%, against the anticipated 3% growth. This downturn highlights challenges in the industrial sector during that period.
Meanwhile, in the financial market, the EUR/USD pair remained steady above 1.1750, as traders anticipated the Federal Open Market Committee minutes. The GBP/USD pair dipped below 1.3500 due to subdued trading conditions post-Christmas.
Gold Prices and Market Activity
Gold prices saw volatility, reaching a high of $4,550 per troy ounce before profit-taking dropped it back to $4,300. The Ethereum market also saw activity with BitMine Immersion increasing its holdings by 44,463 ETH, bringing its total to 4.11 million ETH.
Looking ahead to 2026, advanced countries may experience solid economic performance, continuing trends from 2025. The crypto market in 2025 faced volatility, driven by favourable regulatory changes and adoption of AI.
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Considering Economic Indicators for 2026
The significant drop in South Korea’s industrial output, which fell 1.4% year-over-year instead of the expected 3% rise, is a major warning for global growth. This disappointing number follows last week’s China Caixin Manufacturing PMI, which dipped back into contraction territory at 49.8. This suggests we should consider buying put options on indices heavily exposed to Asian manufacturing to hedge against further weakness as we enter the first quarter of 2026.
We are seeing markets fully price in more rate cuts from the US Federal Reserve for 2026, especially after the cut delivered earlier this month. The CME FedWatch tool is now showing a greater than 70% probability of another rate reduction by the March 2026 meeting, a sentiment that has grown since core inflation has consistently remained below 3% for the past six months. This makes strategies like buying call options on the EUR/USD or selling USD futures compelling ways to position for continued dollar softness.
Gold’s push to a record high above $4,500 reflects more than just a weak dollar; it points to a persistent demand for safe-haven assets. This mood is supported by central bank activity, as data from the third quarter of 2025 revealed they were record net buyers of the metal, a trend that likely continued through the end of the year. Given the volatility at these historic price levels, we should look at using bull call spreads on gold futures to capture more upside while defining our risk.
Institutional conviction in the crypto space remains strong, as evidenced by large treasury firms continuing to accumulate Ethereum. This follows the broader trend we saw after the full approval of spot ETH ETFs back in late 2024, with on-chain data confirming a 15% increase in large wallet holders in the second half of 2025. For traders, this makes buying long-dated call options on ETH an appealing strategy to leverage this ongoing adoption into 2026.
