admin Asian equity markets surged to six-week highs during Monday’s trading session. Investors aggressively bet on upcoming Federal Reserve interest rate cuts for next year. This optimism fueled a massive rally across various global financial asset classes.
Silver prices broke past the $80 per ounce threshold for the first time. However, the metal experienced high volatility immediately after hitting that historic milestone. Gold also maintained its upward trajectory despite a minor intraday easing of 0.45%. The yellow metal is currently eyeing its best annual performance since 1979. It has gained over 72% throughout this year due to strong safe-haven demand.
Meanwhile, the U.S. dollar remained under significant pressure against major global currencies. Traders are now awaiting the latest Federal Reserve meeting minutes due on Tuesday. These documents might clarify the future path of American borrowing costs. Currently, the market expects at least two more rate reductions in 2026.
In the equity space, South Korea’s Kospi index led the regional gains. It jumped 1.7% to reach a fresh two-month peak on Monday. The index has surged an incredible 75% so far this year. This represents its strongest annual performance since the late nineties. Taiwan stocks also climbed 1% to reach a new record high today. Most Asian markets have secured double-digit gains during this calendar year.
Furthermore, the Japanese yen found some support during the Asian afternoon session. It firmed to 156.13 per dollar following hawkish Bank of Japan comments. Several board members highlighted the need for further interest rate increases soon. This contrast with the Fed’s dovish outlook provided the yen some stability.
Geopolitical tensions also influenced investor sentiment across the Asia-Pacific region today. China’s military conducted significant drills around Taiwan, citing a “Justice Mission.” Simultaneously, markets monitored recent diplomatic talks regarding the ongoing conflict in Ukraine. These uncertainties often drive investors toward protective assets like gold and silver.
Strategists suggest that supply worries have turned the metals rally parabolic recently. Consequently, experts warn about potential volatility and technical pullbacks in the near-term. Long-term investors may view these price dips as solid buying opportunities. They continue to diversify away from traditional fiat currencies and volatile debt.
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