Asian stocks gained 0.20% in early trading while maintaining positions near record highs, as silver experienced dramatic volatility after briefly surging past $80 per ounce for the first time before reversing course. The MSCI All Country World Index remained little changed after climbing 1.40% last week to finish at a new all-time high.
Silver's Historic Rally and Sharp Reversal
Silver achieved a milestone breakthrough by rallying 6.00% and pushing beyond $80 per ounce for the first time in trading history, before dramatically reversing course and falling more than 2.00%. This volatile session highlighted the extreme conditions driving precious metals markets.
| Metal: |
Peak Performance |
Current Status |
Key Development |
| Silver: |
+6% to above $80/oz |
Down 2%+ from peak |
First time above $80, then reversal |
| Gold: |
Record $4,549/oz Friday |
Down 1.1% to $4,484.95/oz |
Retreating from records |
| Platinum: |
Record highs Friday |
Following gold lower |
Part of metals correction |
"We are witnessing a generational bubble playing out in silver," noted Tony Sycamore, market analyst at IG Australia. "Relentless industrial demand from solar panels, EVs, AI data centres and electronics, pushing against depleting inventories, has driven physical premiums to extremes."
Global Equity Markets Maintain Momentum
Despite the precious metals volatility, equity markets continued their strong year-end performance. US stock futures remained steady after the S&P 500 finished near an all-time high, while regional Asian markets showed mixed but generally positive sentiment.
| Market/Index: |
Current Performance |
Annual Performance |
Status |
| MSCI World Index: |
Little changed |
Nearly +22% |
At all-time high |
| Asian Shares: |
+0.2% |
Strong yearly gains |
Near records |
| Japan's Topix: |
+0.1% |
Solid performance |
Positive momentum |
| Australia's S&P/ASX 200: |
-0.1% |
Strong yearly gains |
Minor decline |
The MSCI gauge has risen nearly 22.00% in 2025, headed for a third straight annual gain and the biggest since 2019, reflecting sustained investor confidence throughout the year.
Federal Reserve Focus and Market Outlook
Investors are preparing for crucial insights into Federal Reserve policy direction as markets await the FOMC minutes from December's meeting. The central bank's three successive rate cuts have provided significant tailwinds for precious metals and broader market sentiment.
| Focus Area: |
2026 Impact |
Market Significance |
| Fed Rate Path: |
Timing of future easing |
Major market determinant |
| AI Trends: |
Key rally driver |
Crucial for stock performance |
| FOMC Minutes: |
Policy insights |
Committee debate details |
"The focus this week will be on the release of the FOMC minutes," according to Sycamore. "Markets will scour the minutes for deeper insights into the committee debates on the balance of risks and the timing of future easing."
Regional Developments and Currency Movements
Chinese markets remained in focus after the nation pledged to broaden its fiscal spending base in 2026, signaling sustained government support. However, weekend data showed China's industrial profits fell for a second month in November, highlighting persistent challenges from weakening domestic demand and deflation pressures.
| Asset Class: |
Current Movement |
Key Driver |
| Dollar Index: |
Little changed |
End of worst week since June |
| Japanese Yen: |
+0.3% to 156.14 per dollar |
Regional strength |
| Bitcoin: |
+0.7% to $88,169.64 |
Crypto recovery |
| Oil (WTI): |
+0.8% to $57.19/barrel |
Chinese demand prospects |
Geopolitical developments continue influencing markets as Trump reported making "a lot of progress" in talks with Ukrainian President Volodymyr Zelenskiy regarding a potential peace deal to end Russia's invasion. Treasuries remained on pace for their best year since 2020 following the Fed's three rate cuts, despite being set for a monthly loss.