As we look towards the holiday period, gold and silver traders are not taking their foot off the pedal though. The precious metals continue to race higher in the new week with gold now racing to fresh record highs above $4,400. Relentless.It has been mentioned countless times already that gold has a lot going for it heading into next year. But as it would seem, the bulls don’t want to wait in chasing yet another breakout to secure the next upside leg.Gold is now surging past the October highs around $4,375-80 and a firm break above $4,400 will open up more room to the upside for the precious metal. The question is though, how much higher can gold go?Plenty of analysts are of the view that we might see gold trade up to around $4,400 to $4,600 next year. And at this point, we’re already starting to hit part of that threshold. So, what’s next?The technical picture is one that is taking a lot of importance at the moment. But as mentioned previously here, the headwinds for gold might only really appear closer towards 2H 2026. That being said, don’t discount the potential for market players to try and bake that in early.A key challenge to the gold narrative will be “major central banks slowly starting to pivot from rate cuts and start talking about rate hikes once again down the road”. So, just be wary of that.But for now at least, gold buyers will continue to keep the bullish momentum going. Although, thin liquidity conditions might exacerbate the gains we’re seeing here. That as we get into holiday thin trading amid the Christmas and New Year break just around the corner.So, there’s that to consider as well when looking to the run higher above – even if seasonality dictates that December and January have been two of the better months for gold in the past two decades. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight Gold’s surge past $4,400 isn’t just a number—it’s a signal of underlying market dynamics. With inflation fears still looming and geopolitical tensions rising, traders are flocking to gold as a safe haven. This trend could push silver prices higher too, as they often move in tandem with gold. If you’re trading gold, keep an eye on the $4,500 psychological level; a breakout above could attract more institutional buying. On the flip side, if we see a pullback, watch for support around $4,300. The real story here is the potential ripple effect on related assets like silver and even cryptocurrencies, which might see increased volatility as investors seek refuge in traditional safe havens. As we approach the holiday season, expect trading volumes to fluctuate, which could amplify price swings. Stay alert for any news that could impact inflation or interest rates, as these will be key drivers for gold’s trajectory in the coming weeks. 📮 Takeaway Watch for gold’s performance around $4,500; a breakout could signal further upside, while a pullback to $4,300 may offer buying opportunities.

The study reportedly shows that German auto exports to the US declined by almost 14% in the first three quarters of the year, making it the hardest hit industry amid the tariffs imposed by US president Trump.As a reminder, this comes despite a “better” agreement of 15% baseline tariffs on autos set out by Washington and Brussels. That as opposed to the initial 25% rate which was on top of the 2.5% levy previously.Besides the auto sector, German engineering firms also struggled with exports to the US in that sector seen down almost 10% in the first three quarters of 2025. For some context, machinery exports are slapped with a 50% tariff rate when related to steel and aluminium products.The author of the study, Samina Sultan, noted that:”Since it must currently be assumed that US import tariffs will not return to ​pre-Trump administration levels in the foreseeable future, a significant recovery in German exports to the US is unlikely.”Adding that this is going to be the “new normal” for German exporters with the trade war set to prolong under Trump’s administration. As such, this is just something that not only Germany but most countries across the globe have to get used to.I would say that the report isn’t the least bit surprising. And tariffs definitely do not help to ease the pressure on the German economy, which is facing stagflation pressures as we look towards 2026 now. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight German auto exports to the US plummeting by 14% is a big deal for traders: This decline signals potential ripple effects in the broader automotive and manufacturing sectors, especially as tariffs continue to strain international trade relations. For traders, this could mean increased volatility in related stocks, particularly those of major German automakers. If the trend continues, we might see a shift in market sentiment that could impact the Euro against the Dollar, especially if the Eurozone economy weakens further. Keep an eye on key technical levels for automotive stocks; a break below recent support could trigger further selling. On the flip side, some might argue that the decline is already priced in, but with ongoing geopolitical tensions, the situation could escalate quickly. Watch for any announcements regarding tariff adjustments or trade negotiations, as these could serve as catalysts for market movement. The next few weeks will be crucial for gauging the market’s reaction to these developments. 📮 Takeaway Monitor German auto stocks closely; a break below recent support levels could signal further declines, especially if tariffs remain unchanged.

If you ask around, most people would’ve heard the term Santa Claus rally in markets. There’s always that feeling that stocks will perform better as we get towards the end of the year.Call it the Santa Claus rally, call it window dressing, call it whatever you want. However, most investors tend to have a positive bias during the festive period it would seem. But is it really a thing though? Or is it just some unconscious bias that one develops over the years?Well, let’s try and debunk that myth – if it is one. The best way is to take a more seasonal approach of course. As such, let’s take a look at how the S&P 500 has fared over the past two decades during Christmas week.Here’s a summary of the performance by the index during the festive week:2024: +0.7%2023: +0.3%2022: -0.1%2021: +2.3%2020: -0.2%2019: +0.6%2018: +2.9%2017: -0.4%2016: -1.1%2015: +2.8%2014: +0.9%2013: +1.3%2012: -1.9%2011: +3.7%2010: +1.0%2009: +2.2%2008: -1.7%2007: -0.4%2006: +0.5%2005: +0.1%The average weekly performance as such is +0.65% during Christmas week. So, there is some credence at least to the supposed Santa Claus rally.But just like everything else, correlation doesn’t always mean causation. And I would caution anyone who thinks that as long as we’re in Christmas week, stocks are bound to gain more often than not.In fact, the period between Christmas and New Year is also a rather interesting one. If you factor that into the picture, the S&P 500 actually posted its first loss during the interim period between both holidays for the first time in seven years in 2024.And even when you look at Christmas week itself above, consecutive yearly losses are a relatively rare occurrence.Still, it doesn’t mean that we’re due a hot streak just because. Think about the hot hands fallacy if you must.As the Fed delivers a seemingly more hawkish rate cut this month, that has tempered with some of the recent market optimism. But all in all, stocks are still holding up relatively well; that despite concerns surrounding the AI bubble as well.The S&P 500 is still poised for roughly 16% gains this year and that for me is the bigger takeaway. Whatever the Santa Claus rally stands for this year, it won’t mean much in that context.So yes, there is historically and seasonally a pattern of gains for stocks during the festive period in Christmas through to New Year’s. But amid recent uncertainty from the Fed and AI valuations, the thinner liquidity conditions we’re about to see may not necessarily deliver another round of gains in 2025.In other words, it’s a case of just about anything goes during this period even if we tend to associate it with a more positive performance in the past. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight As we approach year-end, the Santa Claus rally could be on the horizon, but traders need to be cautious. Historically, this phenomenon suggests a seasonal uptick in stock prices, often fueled by holiday optimism and institutional buying. However, with current market volatility and mixed economic signals, relying solely on this rally could be risky. Look at the broader context: inflation concerns, interest rate hikes, and geopolitical tensions are still in play. These factors could dampen the typical year-end enthusiasm. If you’re trading stocks, keep an eye on key resistance levels—if major indices like the S&P 500 can break above recent highs, that might confirm a rally. But if they falter, it could signal a reversal. Also, consider how this rally might affect correlated assets like cryptocurrencies, which often follow stock market trends. A strong rally could boost crypto sentiment, while a downturn could lead to increased selling pressure across the board. Watch for any significant price movements in the coming weeks as traders position themselves for year-end. 📮 Takeaway Monitor key resistance levels in major indices; a breakout could signal a Santa Claus rally, but be wary of underlying economic pressures.

The next rate hike to 1.00% could come around June or July next yearBut that would be dependent on the strength of the economy, as well as wage and price developmentsFurther rate hikes after that could become more challenging thoughThat as it would bring borrowing costs closer to the neutral rate, which has not yet been specifiedIn doing so, that will continue to draw the ire and criticism from Japan prime minister TakaichiBOJ won’t say so publicly but probably sees 1.75% as the estimated neutral rate levelA rate hike to 1.50% would be comfortably below that level, and still leave the BOJ enough room to cut rates if neededPossibly two rate hikes to follow in the next fiscal yearThat is if the US economy holds up and underpins the Japanese economy and domestic inflation remains above the central bank’s 2% targetBut if economic uncertainty heightens, BOJ could opt to hike rates just once in the next fiscal year and delay further rate hikes to 2027″BOJ probably wants to ‌resume rate hikes at a pace of about once ‍every six months, but worried about the risk of facing pushback from Takaichi’s administration””That may have been behind Ueda’s ambiguous communication”In the interview mentioned, Sakurai is said to retain “close contact” with incumbent policymakers. So, just keep that in mind when reading into the above. But as mentioned before, the BOJ won’t be explicit in trying to push forward with the next rate hike.Ueda left the door open for that option but didn’t necessarily outline that they would take that next step following the spring wage negotiations next March.It’s going to be a meeting-by-meeting basis as per before but just be wary that the threshold now is much, much higher as the central bank has to deal with potential backlash and pressure from Takaichi now as well. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight The potential rate hike to 1.00% next June or July is a big deal for traders right now. With the economy’s strength and wage growth in focus, any signs of inflation could trigger market volatility. If rates rise, borrowing costs will increase, which could slow down consumer spending and impact sectors like real estate and consumer goods. Traders should keep an eye on economic indicators leading up to this decision, particularly employment data and inflation reports. If the Fed signals a more aggressive stance, we might see a shift in asset allocations, especially in equities and bonds. But here’s the flip side: if the economy shows signs of weakness, the Fed might hold off on hikes, which could lead to a rally in risk assets. Watch for key levels in the S&P 500 and bond yields as we approach these dates, as they could provide clues on market sentiment and potential reversals. 📮 Takeaway Keep an eye on economic indicators leading up to the potential June rate hike; they could signal volatility in equities and bonds.

As the year winds down towards a close and the holiday season takes over, there are still important lessons that one can take away from trading this period. Yes, markets will remain open and that means we as traders need to know how to navigate through the conditions in play.So, what is the worst thing that you can do when dealing with markets during this period?I would argue it is to go looking for something that just isn’t there.Everyone likes action in markets. Nobody likes a dull day. However, it doesn’t mean that every action is one worth noting and chasing. And especially in a time like this, it doesn’t mean that things are what they would seem.Liquidity conditions are thin and so the flows that are still there will exacerbate price movements in pretty much all asset classes.Yes, some of moves might fit a certain narrative or bias that we as traders will associate to a certain asset. But again, correlation doesn’t mean causation in this case.The thing about holiday-thin trading especially when the flows are pretty much the lowest for the year during a one-week period, is that sometimes things just don’t make sense. Price movements are exacerbated and there can be sudden spikes in volatility.However, that doesn’t mean that markets are “moving” and that there is some fundamental event that is “shifting” the market narrative.At the end of the day, we as retail traders can only go with the flow. And it’s important to always read the tea leaves and understand what trading conditions play to our advantage.And this period just isn’t one of those times, typically. Yes, we can get lucky and get something from trades in the next week or so. But I would say, it’s more or less the same as going to the roulette table.So if you’re wanting to chase that extra bit of profit or to make up for something else in the next week or so, proceed with heavy caution. This won’t be one of those normal trading periods with normal liquidity and market conditions, far from it.Sometimes the best trade that you can make is to do nothing at all. And that’s an important lesson to always remember, especially when dealing with times like these.To those already done for the year, I hope that 2025 has been a fruitful year of gains, profits, and lessons for everyone. And to those already on break, have a wonderful Christmas and New Year’s holiday! Catch you again next year. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight As we approach year-end, traders need to stay sharp—holiday trading can be unpredictable. Liquidity often dries up during this period, leading to increased volatility. Many traders might be tempted to close positions early or take profits, but this can create erratic price movements. It’s crucial to monitor key levels and be prepared for sudden swings, especially if major news breaks. The S&P 500, for instance, often sees lighter volumes, which can amplify price changes. Keep an eye on any economic indicators released in December, as they could influence market sentiment. Also, watch for institutional behavior; they might be repositioning ahead of the new year, which could signal shifts in market dynamics. Remember, while many are winding down, opportunities can still arise—especially if you’re ready to act on them. 📮 Takeaway Watch for increased volatility in the S&P 500 as liquidity dries up; be ready for sudden price swings this holiday season.

The Canadian Dollar (CAD) trades little changed against the US Dollar (USD) on Friday, as a rebound in the Greenback keeps USD/CAD confined within its week-old range. At the time of writing, the pair is trading around 1.3784, recovering slightly after dipping to an intraday low near 1.3755. 🔗 Source 💡 DMK Insight The CAD’s stability against the USD at 1.3784 signals a tug-of-war in the forex market. With the USD showing signs of recovery, traders should keep an eye on the 1.3755 support level. If USD/CAD breaks below this, it could trigger further selling pressure, while a bounce could indicate renewed strength in the Greenback. This range-bound action reflects broader market sentiment, particularly as traders digest economic data and central bank signals. Watch for upcoming U.S. economic releases that could sway the USD, as well as Canadian economic indicators that might impact the CAD. The interplay between these currencies could also influence correlated assets like crude oil, given Canada’s status as a major oil exporter. If oil prices fluctuate, expect potential ripple effects on the CAD’s performance. In the short term, monitor the 1.3755 and 1.3800 levels closely for potential breakout or reversal opportunities. 📮 Takeaway Watch the 1.3755 support level in USD/CAD; a break could lead to further downside, while a bounce might signal USD strength.

Gold (XAU/USD) Gold (XAU/USD) regains ground on Friday, edging modestly higher after earlier weakness, even as a resilient US Dollar (USD) caps upside momentum. At the time of writing, XAU/USD trades around $4,345, recovering from a daily low near $4,309. 🔗 Source 💡 DMK Insight Gold’s recent bounce from $4,309 shows resilience, but the strong US Dollar is a major headwind. As XAU/USD hovers around $4,345, traders should note that the dollar’s strength is often inversely correlated with gold prices. This dynamic suggests that unless we see a significant pullback in the dollar, gold’s upside could remain limited. Watch for key resistance around $4,350; a break above that could signal a stronger bullish trend. However, if the dollar continues to strengthen, we might see gold test the lower support levels again. Keep an eye on economic indicators, particularly any shifts in interest rates or inflation data, as these could impact both the dollar and gold prices significantly. Here’s the thing: while gold’s recovery is noteworthy, the underlying pressure from the dollar means traders should be cautious about chasing this rally without confirmation from broader market signals. 📮 Takeaway Watch for gold to break above $4,350 for bullish momentum, but be wary of dollar strength limiting upside potential.

Hedera’s HBAR token has been through the wringer. After spiking to nearly $0.39 earlier this year, the cryptocurrency has shed over 70% of its value, grinding lower in what’s become a textbook downtrend. 🔗 Source 💡 DMK Insight HBAR’s 70% drop signals a critical moment for traders: it’s in a textbook downtrend. With the token previously peaking at nearly $0.39, the current price action indicates strong selling pressure. This downtrend could lead to further declines if it breaks below key support levels. Traders should watch for potential reversal signals around $0.11, which could serve as a psychological barrier. If HBAR fails to hold this level, it might trigger additional sell-offs, impacting market sentiment across similar altcoins. On the flip side, if it manages to bounce back, it could attract speculative buying, especially from retail investors looking for a bargain. Keep an eye on trading volumes; a spike could indicate a shift in momentum. In the broader context, HBAR’s struggles reflect a cautious sentiment in the crypto market, where many assets are facing headwinds. This could also influence correlated assets like other layer-1 solutions, which may see similar patterns of selling pressure or recovery attempts. Watch for any news or developments that could impact Hedera’s ecosystem, as these could provide the catalyst needed for a turnaround. 📮 Takeaway Monitor HBAR closely around the $0.11 support level; a break could signal further declines, while a bounce might attract buyers.

Price behaviour remains centred on the mid-structure pivot as the market searches for a resolution. 🔗 Source 💡 DMK Insight SOL’s price at $126.00 is teetering on a crucial pivot point, and here’s why that matters: traders are eyeing this level for potential breakout or breakdown signals. With the market in a consolidation phase, a decisive move above or below this pivot could set the tone for the next trend. If SOL breaks above, we could see a rush of buying pressure, potentially targeting higher resistance levels. Conversely, a drop below might trigger stop-losses and lead to a cascade of selling, impacting not just SOL but also related assets like ETH and BTC, which often move in tandem. Keep an eye on volume; a spike could indicate a strong commitment to the direction the price takes. So, watch for a clear break—either above $130 or below $120—over the next few days to gauge where SOL is headed next. 📮 Takeaway Monitor SOL closely for a breakout above $130 or a drop below $120 to determine the next trading direction.