In September, Germany’s monthly retail sales aligned with expectations at an increase of 0.2%

    by VT Markets
    /
    Oct 31, 2025

    Gold’s Minimal Increase Amid Firm US Dollar

    Meme coins like Dogecoin, Shiba Inu, and Pepe are under pressure, hovering around monthly support levels. Their fate could heavily depend on broader market sentiment changes.

    In the US market, artificial intelligence remains the key focal point, influencing global economic trends. Despite ongoing geopolitical and market turbulence, AI continues to dominate investor attention.

    Investment advisory service FXStreet offers various reports and predictions on forex and commodity markets. These are designed to assist with decision-making but should not replace individual research.

    Readers are reminded of the risks involved in market investments, particularly regarding meme coins and forex trading. Understanding and managing these risks is essential for successful financial decision-making.

    The US Dollar’s Sustained Strength

    The US Dollar is showing sustained strength, and we see this continuing into November. The latest jobs report for October 2025 showed the addition of 210,000 jobs, beating expectations and keeping the unemployment rate at a low 3.8%, which gives the Federal Reserve little reason to consider rate cuts. For traders, this points towards buying call options on the U.S. Dollar Index (DXY) or selling short-dated EUR/USD futures.

    We see continued weakness in the Euro, especially with German retail sales only meeting a modest 0.2% forecast for September. With the latest October manufacturing PMI for the Eurozone slipping to 48.5, indicating contraction, the economic divergence with the US is clear. This makes put options on the EUR/USD an attractive hedge against further downside.

    Artificial intelligence remains the market’s primary driver, overshadowing other narratives. Following the recent AI developer conference in mid-October, implied volatility on major tech stocks and AI-focused ETFs has surged by over 15%. We think selling short-dated puts on these names to collect premium is a viable strategy, as dips are likely to be bought quickly.

    Gold is struggling to find a bid, and we expect this to continue as long as the dollar remains firm. Much like the environment we saw back in 2023, a hawkish Fed and rising real yields are capping any significant rallies in the metal. Selling call spreads on Gold futures could be a way to profit from this range-bound, limited-upside environment.

    The sell-off in high-risk assets like Dogecoin and Shiba Inu serves as a clear warning about market sentiment. We’ve seen over $5 billion in outflows from crypto derivative markets in October 2025 alone, signaling a flight to safety. This broader risk-off mood suggests that buying protective put options on more volatile market indices, like the Russell 2000, may be prudent.

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