How to trade in high-inflation markets
1.Practice a disciplined approach based on macroeconomic analysis and sound risk management.
2.Understand central bank policies, as rate changes dictate capital flow and currency direction.
3.Monitor inflation indicators like the CPI and PPI to preview market sentiment changes and position accordingly.
4.Put your capital into inflation-resistant assets. Gold, silver, and oil have all demonstrated strength and are the foundation of a well-diversified portfolio.
5.Revisit and modify your positions as the markets shift rapidly with new information arriving.
What to trade?
When inflation is high, investors turn to assets that can withstand economic shocks. A professional trader does not only react to inflation news. A good strategy requires forward-looking positioning across a range of assets.
Stock indices show mixed dynamics due to inflationary pressures. The US500 is struggling with interest rate-sensitive sectors, and European indices, including the DE30 and EU50, are rising due to more accommodative monetary policy and government spending.
Foreign exchange markets have provided some of the most compelling inflation trades.
•The Bank of Japan’s determination to maintain its ultra-easy policy has devalued the yen, making the USDJPY pair a good long trade.
•The euro has rebounded against the dollar since the ECB is tighter than the Federal Reserve. Traders have taken advantage of the move by going long EURUSD.
Bitcoin’s price action has followed broader market sentiment, with dips below $77 000 and prompt bounce-backs to $82 966. Unlike traditional inflation hedges like gold, Bitcoin’s correlation with risk assets remains high, so its price reacts more to liquidity conditions.
In 2025, gold has cemented its status as a preferred inflation hedge. Traditionally considered a safe-haven asset, gold has surpassed $3045 per ounce, a record high reflecting investor nervousness.
Our forecast for XAUUSD remains bullish, which is confirmed by the opinions of major banks. We are considering buying XAUUSD on consolidation above 3050 with a target of 3200.
•Silver, which tends to be underappreciated, has shown strong relative strength, quoting at $34.10 an ounce with a 14% year-to-date appreciation. Industrial demand from the renewable energy sector has supported silver’s uptrend, making it an excellent long trade.
•Oil has provided traders with short-term volatility trades, recovering from a seven-week losing run to close at $67.18 a barrel. Geopolitics remain a primary driver, so traders closely watch supply disruptions and OPEC policy shifts.
•Most Trusted Broker — 2025
These awards confirm our commitment to building a rewarding trading environment and helping you uncover your potential. Thank you for choosing to trade with an award-winning broker!
Choose MetaTrader 5 with Top Forex Brokers?
•Blazing-fast execution & enhanced stability
•38 built-in technical indicators & 21 timeframes for precision trading
•Optimized for all devices—desktop, mobile & web
•Trade a wide range of assets: Stocks, Commodities, Forex & more!
