Post by : Meena Ariff

Asian stocks surged to their highest levels in six weeks on Monday, fueled by growing optimism that the Federal Reserve will cut interest rates next year. This positive sentiment helped ease concerns over global economic growth and encouraged investors to move into riskier assets, pushing Asian equity markets higher. At the same time, the U.S. dollar weakened, hovering near its lowest point in nearly three months, which further supported the rally in stocks and commodities.

A softer dollar makes commodities priced in U.S. dollars more affordable for buyers using other currencies, leading to increased demand. This effect was clearly visible in the precious metals market, where silver saw a remarkable surge, climbing above the $80-per-ounce mark during volatile trading on Monday. This price level for silver is a rare milestone not seen in recent years and reflects strong demand from both investors seeking safe-haven assets and industries that use silver in manufacturing.

While silver soared, other precious metals showed mixed movements. Platinum and palladium prices fell sharply after reaching all-time highs recently, as some investors took profits amid the volatile market conditions. Gold, the classic safe-haven metal, dipped slightly by 0.45% on Monday but remains on a strong upward trend. Throughout 2025, gold has broken multiple record highs and is poised to deliver its biggest annual gain since 1979, with a stunning increase of over 72%. This growth is driven by ongoing global uncertainties and sustained demand for safe assets.

Looking ahead, investors are closely monitoring the Federal Reserve’s policy signals. The widespread expectation is that the Fed will begin easing monetary policy next year to support economic growth. Such a move would likely lower borrowing costs and encourage spending and investment worldwide. This anticipation has boosted confidence not only in equities but also in commodities markets, as the combination of a weaker dollar and potential Fed rate cuts creates favorable conditions.

Overall, the global markets are experiencing a dynamic shift. The weakening dollar, coupled with hopes for monetary easing, is driving both stocks and precious metals higher, signaling renewed investor optimism for the year ahead.

#Global News #Asia News