U.S. Stock Index Futures Steady as Markets Await Fed Policy Clues in Holiday-Thinned Trade 
U.S. Dollar Starts 2026 Weak as Yen, Euro and Sterling Hold Firm Amid Rate Cut Expectations 
Singapore GDP Growth Surges in 2025 but Outlook Remains Cautious Amid Global Trade Risks 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year 
U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
Japanese Business Leaders Urge Government Action as Weak Yen Strains Economy 
Federal Reserve Begins Treasury Bill Purchases to Stabilize Reserves and Money Markets 
Citi Forecasts a Volatile but Ongoing Bull Market for S&P 500 in 2026 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
South Korea Exports Hit Record High as Global Trade Momentum Builds 
U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
Asian Markets Slip as Precious Metals Cool, Geopolitical Tensions Weigh on Sentiment 
Asian Markets End Year on AI Optimism as Precious Metals and Currencies Shine 
South Korean Won Slides Despite Government Efforts to Stabilize Currency Markets 
Gold prices edged higher in Asian trading on Wednesday, hovering just below the record highs reached in the previous session, as a combination of easing U.S. inflation data, expectations of future Federal Reserve rate cuts, and escalating geopolitical tensions supported demand for safe-haven assets. Spot gold rose 0.7% to $4,623.55 per ounce, after touching an all-time high of $4,634.33 on Tuesday. U.S. gold futures for March delivery also advanced 0.6% to $4,627.10 per ounce, reflecting continued investor appetite for precious metals.
The rally in gold was underpinned by fresh U.S. consumer price index data released on Tuesday, which came in below market expectations. Core CPI increased by just 0.2% in December and stood at 2.6% year-on-year, reinforcing the view that inflationary pressures are cooling. As a result, financial markets are increasingly confident that the Federal Reserve will begin cutting interest rates later this year, with traders now pricing in around two rate cuts in 2026. Lower interest rates typically benefit non-yielding assets such as gold by reducing the opportunity cost of holding bullion.
Silver prices significantly outperformed gold, surging nearly 3% to a fresh record high of $90.04 per ounce. Strong industrial demand, coupled with rising safe-haven flows, has added momentum to silver’s rally. Platinum also posted sharp gains, rising 4% to $2,415.21 per ounce and nearing the record levels seen last month, highlighting broad-based strength across the precious metals complex.
Geopolitical risks further boosted gold prices, as Iran faces intensifying anti-government protests that have reportedly resulted in around 2,000 deaths. Fears of wider instability in the Middle East have driven investors toward safe-haven assets. U.S. President Donald Trump added to market unease by warning of potential military action, threatening a 25% tariff on countries doing business with Iran, and publicly encouraging protesters to escalate pressure on Iran’s leadership.
Additional support for gold came from concerns over the independence of the U.S. Federal Reserve, following the Trump administration’s decision to open a criminal investigation involving Fed Chair Jerome Powell. While the move unsettled investors, senior central bankers and major financial executives voiced strong support for Powell, emphasizing the importance of safeguarding the Fed’s autonomy. Together, these economic and geopolitical factors continue to provide a strong foundation for elevated gold prices.
