Asian Stocks Surge Amid Precious Metals Rally and Fed Rate Expectations

Asian stocks reach six-week highs as the dollar drops on anticipated U.S. Federal Reserve rate cuts next year, sparking a rally in precious metals. The stock rise is driven by technology gains, while silver and gold experience volatile trading due to geopolitical and fiscal uncertainties.

Asian stocks reached six-week highs on Monday, driven by expectations of U.S. Federal Reserve rate cuts next year. This anticipation has not only caused the dollar to hover near a three-month low but has also led to a robust rally in precious metals.

Silver soared past the $80-per-ounce mark, although it later faced volatile trading, while platinum and palladium dropped sharply from all-time highs. Gold eased nearly 1% but has breached record highs consistently this year. Charu Chanana of Saxo attributes this to rate-cut expectations and hedging against geopolitical tensions.

Moreover, geopolitical developments influenced market sentiment after U.S. President Trump mentioned progress in peace talks with Ukraine. Additionally, investor focus turns to the Fed's minutes release, with labor market data in the new year potentially influencing further monetary policy decisions.