Gold and silver prices surged to record highs, extending sharp gains for the year. Investors, including central banks, have been buying the precious metals as safe-haven assets amid uncertainty. Gold rose 0.9% to $4,541.80 per troy ounce, while silver leapt 4.5% to $74.90 per ounce, briefly surpassing $75.
Precious metals rally
Gold and silver’s gains reflect a mix of factors. Earlier surges in gold prices partly mirrored concerns during the weeks-long U.S. government shutdown. Expectations that the U.S. Federal Reserve will cut rates further in the new year, weakening the dollar, have also fueled buying. Stephen Innes of SPI Asset Management said in a recent report: “Gold is doing what gold does when the world loses its anchor: it becomes the anchor,” Stephen Innes of SPI Asset Management said in a recent report. “For centuries, gold has been the one asset that doesn’t blink. When politics goes sideways, when currencies fray, when inflation eats the furniture, gold is the one piece of collateral the world still treats as final.
Tokyo’s Nikkei 225 climbs
In share trading, Tokyo’s Nikkei 225 advanced 0.7% to 50,750.39 after the Cabinet approved a record defense budget plan exceeding 9 trillion yen ($58 billion) for the coming fiscal year. Prime Minister Sanae Takaichi’s government aims to fortify Japan’s strike-back capability and coastal defenses with cruise missiles and unmanned arsenals amid heightened tensions with China. Heavy-industry and high-tech companies led the advance.
Currency and regional market moves
The dollar rose to 156.25 Japanese yen from 155.83 yen, while the euro fell to $1.1777 from $1.1785. Markets in mainland China advanced, with the Shanghai Composite index gaining 0.1% to 3,963.68. South Korea’s Kospi climbed 0.5% to 4,129.68, and Taiwan’s Taiex jumped 0.7%. Shares fell in Thailand and India.
Oil and crypto prices
U.S. crude oil gained 18 cents to $58.53 a barrel, and Brent crude added 15 cents to $61.95 a barrel. Oil prices have fallen recently after spiking near $70 a barrel in June. The price of bitcoin rose 2.2% to $89,705.
Market closures and trading context
Elsewhere in the region, markets in Hong Kong, Australia, New Zealand and Indonesia were closed. Most European markets will remain closed Friday, while Wall Street will reopen to a full day of trading after the Christmas holidays. Volumes are expected to stay light as most investors have closed out their positions for the year.
Key Takeaways
- Gold and silver hit record highs, with gold at $4,541.80 and silver at $74.90 per ounce.
- Tokyo’s Nikkei 225 rose 0.7% to 50,750.39 after a record defense budget approval.
- Oil prices edged up, while bitcoin climbed to $89,705 amid a quieter trading environment.
The day’s movements underscore the continued demand for safe-haven assets and the impact of geopolitical and fiscal developments on global markets.
