Precious Metals Dive as Stock Markets Hold Steady Amid AI Boom

Investors sold off gains in precious metals like gold, silver, and platinum, while stock markets remained stable, benefiting significantly from the AI stocks boom. European shares and the MSCI index saw notable performance, driven by strong chipmaker activity, despite geopolitical and economic challenges looming over global markets.

On Wednesday, a selloff in precious metals occurred as investors sought to convert significant annual gains in gold, silver, and platinum into cash ahead of the new year. Simultaneously, stock markets consolidated after a stellar year dominated by AI stock surges and geopolitical concerns.

Silver prices dramatically fell nearly 6% in London post a 150% increase this year, while gold and platinum also saw notable reductions. Yet, European markets consistently hovered near record highs, bolstered by robust performances in banking and weapons stocks, amidst a tumultuous global economic climate.

Investor attention remains fixed on U.S. Federal Reserve's interest rate policies as the dollar marked a 9.4% drop for the year. Markets anticipate the appointment of a new Fed chair, potentially Kevin Hassett, which may impact future market dynamics as geopolitical tensions persist, notably concerning China and Taiwan.