Gold and Asian Stocks Surge Amid Calmer Metal Markets and U.S. Factory Boom

Gold and Asian stocks rebounded on Tuesday following wild swings in metal markets, bolstered by a sharp increase in U.S. factory activity. Asian indices like Japan's Nikkei and Korea's KOSPI saw significant gains. Investors are watching an upcoming central bank meeting in Australia, potentially signaling a rate hike.

In the wake of tumultuous metal market movements, gold and Asian stocks saw a notable rebound on Tuesday, as the trading landscape took on a calmer tone. This change in mood was largely due to a significant surge in U.S. factory activity reported overnight.

Japan's Nikkei index recovered by 2.5% after Monday's losses, while South Korea's KOSPI climbed 4%. Market futures also indicated a potential recovery in Hong Kong, with S&P 500 futures increasing by 0.3%. Traders are now closely observing upcoming earnings sessions and a central bank meeting in Australia, where a strong jobs market and unexpected inflation figures are anticipated to lead to a 25 basis point rate hike.

Australian shares witnessed a rise of 1.3% during early trade, with the Aussie dollar remaining firm at $0.6958 despite prior volatility. Gold prices increased by 3% in Asian trading to reach $4,800 per ounce, recovering almost 9% from Monday's lows. Although the price fluctuations were partly due to speculative positions being abandoned, it highlights ongoing market unease.

(With inputs from agencies.)