Gold and Silver Hit Record Highs as Asian Markets Trade Mixed and U.S. Futures Slip

BY EMMANUEL OGBONNA

U.S. stock futures edged lower on Friday as global markets showed little conviction in thin post-holiday trading, while Asian shares finished mixed with Japan’s benchmark index leading regional gains. Investors largely stayed on the sidelines, weighing persistent geopolitical uncertainty and expectations for looser monetary policy in the year ahead.

Precious metals surged to fresh record highs, extending a powerful rally that has defined markets this year. Gold climbed 0.9% to $4,541.80 an ounce, while silver jumped 4.5% to $74.90 an ounce, briefly pushing above the $75 mark. The gains reflect sustained demand from investors and central banks seeking protection against political risk, currency volatility and inflationary pressures.

Gold’s ascent has been fueled in part by lingering concerns over political dysfunction in Washington following a prolonged U.S. government shutdown earlier this year, as well as growing confidence that the Federal Reserve will deliver additional interest rate cuts in the coming months. Lower rates tend to weaken the dollar, making dollar-priced commodities more attractive to global buyers and boosting demand for non-yielding assets such as gold.

“Gold is doing what gold does when the world loses its anchor: it becomes the anchor,” said Stephen Innes of SPI Asset Management. He noted that in times of political strain, currency instability and inflation fears, gold continues to serve as the ultimate store of value for investors seeking certainty.

Equity markets across Asia reflected a cautious mood. In Tokyo, the Nikkei 225 rose 0.7% to 50,750.39, supported by gains in heavy industry and technology shares. The advance followed approval by Japan’s Cabinet of a record defense budget exceeding 9 trillion yen, or roughly $58 billion, for the next fiscal year. Prime Minister Sanae Takaichi’s government has pledged to strengthen Japan’s strike-back capabilities and coastal defenses through expanded deployment of cruise missiles and unmanned systems, citing heightened regional tensions with China.

Elsewhere in Asia, markets posted modest gains. China’s Shanghai Composite edged up 0.1% to 3,963.68, while South Korea’s Kospi rose 0.5% to 4,129.68. Taiwan’s Taiex added 0.7%, reflecting strength in technology-related shares. By contrast, markets in Thailand and India closed lower.

Currency markets were relatively stable. The U.S. dollar strengthened to 156.25 Japanese yen from 155.83 yen, while the euro slipped slightly to $1.1777 from $1.1785.

Several markets in the region, including Hong Kong, Australia, New Zealand and Indonesia, remained closed for holidays. Most European markets were also shut, while Wall Street was set to resume a full trading session after the Christmas break. Trading volumes were expected to remain subdued as many institutional investors have already wound down activity for the year.

In energy markets, oil prices edged higher in early trading. U.S. crude rose 18 cents to $58.53 a barrel, while Brent crude added 15 cents to $61.95 a barrel. Despite the uptick, oil prices remain well below recent highs after retreating from near $70 a barrel in June amid concerns about global demand.

In cryptocurrencies, bitcoin advanced 2.2% to $89,705, continuing its volatile but broadly upward trend as digital assets remain sensitive to shifts in risk appetite and monetary policy expectations.