Insights 
VT 
Japan’s Tertiary Industry Index recorded a decline of 0.4% in August, below the anticipated 0.2%. This suggests a contraction in Japan’s service sector during the period.
The UK GDP grew by 0.1% in August as anticipated. This contributed to the Pound Sterling maintaining stability amid fluctuations in the US Dollar.
Gold Prices And Geopolitical Risks
Gold prices rose due to renewed US-China trade tensions and geopolitical risks. The precious metal benefitted from Federal Reserve rate cut expectations and a US government closure, which pressured the USD.
Dogecoin stabilised around $0.19 on Thursday after a week of corrections amounting to nearly 5%. Whale accumulation in the market may point to a future price recovery for the cryptocurrency.
Market speculation sees gold as a stable asset despite ongoing economic uncertainties. Its ongoing appeal is rooted in its resilience amidst a challenging fiscal environment.
It’s vital for readers to conduct thorough research before making any financial decisions. The information provided is for general purposes and does not serve as investment advice.
Japanese Economy And Currency Implications
The disappointing Japanese Tertiary Industry Index data from August, which showed a -0.4% contraction, points to a deepening slowdown in the country’s service sector. This follows a revised Q2 GDP growth of only 0.2%, showing a clear loss of momentum in the domestic economy. With the Bank of Japan unlikely to tighten policy in this environment, we should consider options that benefit from a weakening yen, particularly against currencies with more resilient economies like the British Pound.
We are seeing a clear bias against the US dollar, driven by expectations of Federal Reserve rate cuts and renewed trade tensions with China. The latest US CPI data for September 2025, which came in at 2.8%, has reinforced bets that the Fed will act to support the economy. Derivative traders could look at selling futures on the US Dollar Index (DXY), which is struggling to hold the key 100 level, or buying call options on pairs like EUR/USD.
Gold’s push toward all-time highs is a direct result of this environment, functioning as a hedge against both geopolitical risk and potential currency debasement. This rally is supported by massive central bank buying, which, according to the World Gold Council’s Q3 2025 report, has continued at a record pace seen over the past few years. Using futures or call spreads to maintain long exposure to Gold and Silver seems prudent, as downside appears limited.
Ongoing caution is warranted due to the prevailing US-China trade tensions, which have escalated since the US announced new tariffs on Chinese EVs over the summer of 2025. This uncertainty is keeping a lid on broad risk appetite and fueling the demand for safe havens. Traders should consider buying protection, such as puts on equity indices or calls on the VIX, to hedge against sudden market swings in the coming weeks.
