Precious Metals Soar Amid Economic Uncertainty

Asian stocks rose to six-week highs with the backdrop of expected Federal Reserve rate cuts next year. Precious metals, particularly silver, saw significant price increases amid geopolitical and fiscal uncertainties. The buoyant market mood is supported by investor hope in AI and business diversification.

Asian stocks reached six-week highs on Monday as the anticipated Federal Reserve rate cuts next year sent ripples through various markets, particularly stimulating precious metals. Silver surged past $80 per ounce, while platinum and palladium slid after recent peaks. Gold experienced a minor fallback but continues to promise its best annual gain since 1979.

Chief investment strategist at Saxo, Charu Chanana, pointed out that uncertainty in geopolitics and fiscal policies has fueled the momentum in precious metals, attracting long-term investments. Amid these developments, President Trump met with Ukrainian President Zelenskiy, though no peace agreement was made, while tensions grew around Taiwan due to Chinese military maneuvers.

As the year approaches its end, Asian stocks maintain robust performance, with South Korea's Kospi and several other indices showing significant growth. Investor attention this week will focus on the Federal Reserve's last meeting minutes, which might shape expectations for future rate cuts. Meanwhile, the yen found slight support following insights from the Bank of Japan's policy meeting.

(With inputs from agencies.)