Global stock markets in many countries were closed for holidays, resulting in light trading activity. After a brief correction yesterday, the metals sector collectively strengthened, with gold, silver, and copper prices reaching new highs, while platinum and palladium also moved higher.
On December 26, US stock index futures edged lower. Major European stock markets (Germany, France, the UK, Italy) were closed for holidays. Asian markets saw thin trading; Japan's TOPIX index hit a new record high, while markets in Australia and New Zealand were also shut. US Treasury yields rose, whereas long-term Japanese government bond yields declined. The US dollar saw a slight increase. Offshore Chinese Yuan weakened slightly after breaking through the 7.0 level, the Japanese Yen depreciated modestly, and the South Korean Won rebounded to its highest level since early November. Metals and crude oil strengthened, and cryptocurrencies advanced.
This broad-based rally in the metals market reflects investors' deep anxiety about the macroeconomic environment and an urgent demand for physical assets. On one hand, expectations for Federal Reserve rate cuts combined with a sharp drop in the US dollar have reduced the cost of holding commodities. On the other hand, national security investigations into critical minerals, escalating sanctions against Venezuela, and geopolitical uncertainties in the Middle East and Africa have significantly heightened market risk aversion and the desire to hoard supplies.
According to Wall Street News, Kelvin Wong, Senior Market Analyst at OANDA, stated:
"Momentum-driven and speculative activities have been pushing gold and silver prices higher since early December. Factors such as thin year-end liquidity, expectations for protracted US rate cuts, a softer US dollar, and intensified geopolitical risks are collectively driving precious metal prices to new highs. Looking ahead to the first half of 2026, gold prices could potentially move towards $5,000 per ounce, while silver prices might reach around $90 per ounce."
Key market movements are as follows:
Dow Jones futures fell 0.17%, S&P 500 futures declined 0.03%, and Nasdaq futures were largely flat. Japan's Nikkei 225 Index closed up 0.7% at 50,750.39 points; Japan's TOPIX index closed up 0.1% at 3,423.06 points; South Korea's Seoul Composite Index closed up 0.5% at 4,129.68 points. The yield on the 10-year US Treasury note rose 2 basis points to 4.15%. The Japanese Yen depreciated 0.2% against the US dollar to 156.19; the Offshore Chinese Yuan was largely flat against the US dollar at 7.0041; the South Korean Won strengthened by up to 1.2% against the US dollar to 1,429.85. Spot gold was last at $4,510.54 per ounce, having reached above $4,530 during the session, setting another record high; spot silver was last at $74.62 per ounce, having breached $75, also reaching a new all-time high; WTI crude oil rose nearly 0.3% to $58.52 per barrel. Bitcoin rose 1.3% to $89,020.81; Ethereum price increased 1.1% to $2,976.44.
The Offshore Chinese Yuan was last quoted at 7.0061. Today's central parity rate for the Yuan against the US dollar was set at 7.0358, raised by 34 points, marking the highest level since September 30, 2024. On Thursday, the offshore Yuan strengthened past the psychological barrier of 7.0 for the first time since September 2024. According to Wall Street News, Zhaopeng Xing, Senior Strategist at Australia & New Zealand Banking Group, believes the signal from today's parity setting indicates that the People's Bank of China does not want the Yuan to appreciate too rapidly. This aligns with the central bank's recent commitments made during its quarterly monetary policy meeting.
The Japanese Yen ended its gaining streak and softened slightly, with the Yen depreciating 0.2% against the US dollar to around 156.17. As Japanese inflation fell more than expected, with pressures from food and energy prices easing, market expectations for the Bank of Japan to delay interest rate hikes have increased.
The South Korean Won extended its gains from the previous day, strengthening by up to 1.2% against the US dollar to 1,429.85, rebounding to its highest level since early November. This follows verbal intervention by South Korean authorities regarding the Won's recent weakness and the announcement of a new package of tax measures aimed at helping stabilize the foreign exchange market.
Gold prices steadily recovered, trading above $4,500 per ounce, last quoted at $4,510.54, having reached above $4,530 to set another record high. Spot silver recorded its fifth consecutive daily gain on Friday, last quoted at $74.62 per ounce, having breached $75, rising over 4.5% during the session to also set a new all-time high. Due to a weaker US dollar and investors betting on tighter global copper supplies in 2026, Shanghai copper futures surged to a record high, and New York copper prices also rose.
WTI crude oil rose nearly 0.3% to $58.52 per barrel. Traders are closely monitoring the partial US blockade on Venezuelan crude oil shipments and military strikes by Washington against terrorist groups within Nigeria.
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