AI Surge and Global Uncertainties Boost Gold and Oil Markets

Japanese shares surged in response to AI optimism, with Asian markets following suit. However, uncertainties about the Federal Reserve and unrest in Iran boosted gold and oil prices. Meanwhile, U.S. banks prepare for earnings reports amid interest rate controversies, and questions loom over Fed independence and future economic policies.

A remarkable rise in Japanese shares set a positive tone for Asian markets on Tuesday, fueled by investor enthusiasm for AI technologies. Meanwhile, gold prices surged due to concerns over Federal Reserve independence, outweighing the dollar.

The momentum continued as Japan's Nikkei index hit record highs, supported by a weak yen and talks of fiscal stimulus. South Korea and Taiwan markets reached new peaks, while China's blue chips attained a four-year high. Analysts predict a continued climb in global equities, driven by AI-related growth.

Factors contributing to market dynamics include the U.S. inflation forecast, upcoming bank earnings, and international issues like Iran's unrest. These have led to elevated gold and oil prices, amidst global concerns over economic stability.