On September 1, 2025, the North American markets saw minimal action due to the US/Canadian holiday. WTI crude increased by 68 cents to $64.61, while the S&P 500 futures rose by 0.2%. Gold experienced a significant rise, gaining $30 to reach $3476.
In currency markets, the British pound led, whereas the Japanese yen lagged. There’s a muted response to a US court blocking Trump’s tariffs, as market participants seem to adopt a ‘wait and see’ stance. The New Zealand dollar made modest gains, and the euro continued its steady rise.
Precious Metals Surge
Precious metals turned out to be the top performers, with silver reaching its highest value in 14 years. Gold increased for the fifth consecutive day, standing just $25 short of a record high set earlier this year. Despite some political unrest in the UK and France, these did not affect the euro’s upward trend.
The market’s news flow remained light, owing in part to the holiday. Trump’s tweets on Covid vaccines and US-India trade relations did not impact markets, though there is speculative talk concerning his health due to his low public profile.
The surge in precious metals is the most actionable signal from today’s quiet session. With gold at $3476, we are positioned just below the all-time high of $3501 set back in May 2025. Buying call options on gold and silver ETFs is a direct way to play this strong momentum, which appears fueled by last week’s CPI data showing core inflation holding at 4.1%.
Silver’s push to a 14-year high is particularly notable as it approaches levels we have not seen since the commodity boom of 2011. This move is supported by strong industrial demand, with reports from last month showing the green energy sector’s silver consumption up 15% year-over-year. Traders should consider bullish positions through futures contracts to capture this strength.
Market Volatility Expected
The quiet in the equity market is likely temporary due to the court’s block on tariffs. We saw a similar pattern during the trade disputes of the late 2010s, where initial court rulings caused sharp, short-term volatility spikes. This uncertainty makes buying straddles or strangles on major index ETFs a sensible strategy to profit from a large move in either direction.
Implied volatility readings confirm that a larger market move is anticipated. The VIX index is currently sitting near a relatively low 15, but options pricing suggests traders are betting on a move towards 25 in the next 45 days. This makes purchasing VIX call options a relatively cheap way to hedge against potential political or legal surprises.
In foreign exchange markets, the divergence between British and Japanese policy creates a clear opportunity. The Bank of England’s hawkish stance from last week continues to support the pound, while the Bank of Japan remains committed to its ultra-loose policy. We should look at long GBP/JPY options or futures to ride this widening policy gap.
