Equity markets experienced a robust day despite a decline in gold and silver prices. The FTSE 100 demonstrated resilience, closing with a gain of 90 points even amid decreased precious metal values. AstraZeneca\u2019s transition to the NYSE from the Nasdaq contributed to the positive market performance.<\/p>\n
The collapse in gold and silver has prompted some dip buying. Recent trading sessions saw substantial losses in these metals, yet fundamentals allegedly remain unchanged, leading to reconsideration about reliance on past momentum-driven moves. <\/p>\n
The VIX decline has supported a risk-on sentiment in the broader market, although gold and silver entered a bear market phase. The decline in miners and oil stocks was limited by activity in dip buying and adjustments following the weekend’s market developments. <\/p>\n
Currency pairs such as NZD\/USD, USD\/JPY, and GBP\/USD faced varying movements influenced by broader economic indicators and central bank actions. For instance, GBP\/USD recouped some losses after the Greenback’s strength and anticipation of the Bank of England’s meeting. Elsewhere, Ethereum and XRP exhibited specific trends, with factors like low retail interest and changing holdings impacting their pathways.<\/p>\n
We are seeing a clear divergence between equities and precious metals, signaling a strong risk-on mood to start the month. The VIX has sharply reversed course from its late January highs above 25, now trading comfortably below 18, which supports taking on more risk. This environment suggests that any short-term dips in major indices are likely buying opportunities for now.<\/p>\n
The weekend’s collapse in gold and silver was dramatic, with gold falling from well over $5,000 to near $4,600 an ounce in just two sessions. While dip buyers are emerging, we must question if the momentum from 2025 has finally broken down. The trading volume on Friday was the highest we have seen since the third quarter of 2025, which often signals that the weakest hands have been forced out of the market.<\/p>\n
Central bank policy is about to take center stage, creating immediate opportunities in currency derivatives. The Reserve Bank of Australia is expected to hike its cash rate to 3.85% tomorrow, which has already been heavily priced into the market. We should watch the implied volatility on Australian dollar options, as any surprise in the RBA’s tone could cause a significant price swing.<\/p>\n
The FTSE 100 continues to be a source of strength, hitting new record highs even as its mining constituents face pressure. AstraZeneca’s continued outperformance on speculation it will eventually drop its London listing remains a key driver for the index. We believe call options on the FTSE 100 are a good way to maintain exposure to this upside momentum while defining risk.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" FTSE 100 rises despite falling gold, silver; AstraZeneca\u2019s NYSE move and VIX drop boost market sentiment.<\/p>\n","protected":false},"author":62,"featured_media":16984,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/40726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=40726"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/40726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16984"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=40726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=40726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=40726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}