Metal prices soared collectively over the Christmas holiday, with gold, silver, and copper reaching new highs. Better-than-expected economic data hit rate cut expectations, and global stock markets declined.

Metal prices soared collectively over the Christmas holiday, with gold, silver, and copper reaching new highs. Better-than-expected economic data hit rate cut expectations, and global stock markets declined.

Stronger-than-expected US economic growth data has weakened market bets on a near-term Fed rate cut, exerting broad pressure on global stock markets. Commodities surged, with gold, silver, platinum, and London copper hitting record highs, and wheat prices extending gains.

On December 24, US stock index futures all fell, and most Asian stock indexes declined. The US dollar softened, while the yen strengthened for the third consecutive day and the Korean won also rose. Commodities climbed sharply; spot gold briefly surpassed $4,500 per ounce for the first time before pulling back slightly, silver crossed $70 and continued its uptrend, platinum surged over 3% to new highs, London copper broke through $12,220/ton and kept rising, while London tin and spot palladium rose more than 2% and 4% respectively. Chicago wheat futures rose again, notching up five consecutive days of gains. Cryptocurrencies came under pressure, with both Bitcoin and Ethereum declining.

Although stronger-than-expected US growth data has dampened market expectations for a near-term Fed rate cut, as year-end approaches, overall risk appetite has still warmed up somewhat. Earlier, high valuations in tech stocks driven by the AI boom had sparked trader concerns, but market confidence is recovering, and expectations for robust corporate earnings growth by 2026 are becoming a new support.

eToro analyst Brett Kenwell noted:

“If consumers remain resilient during the holidays and in the fourth quarter, that will benefit US GDP and corporate earnings. Earnings continue to beat expectations. Optimists hope this trend will persist into 2026.”

The key market moves are as follows:

Dow futures down over 0.1%, S&P 500 index futures down 0.13%, Nasdaq futures down 0.12%

Nikkei 225 closed down 0.1% at 50,344.10; TOPIX closed down 0.5% at 3,407.37; Korea's KOSPI closed down 0.2% at 4,108.62.

The US 10-year Treasury yield was essentially flat at 4.16%; Japan's 10-year yield rose 1 bp to 2.040%

Dollar index down 0.2%, yen rose 0.4% against USD to 155.67; won strengthened, approaching the 1,500 mark against USD; RMB continued to rally, nearing the 7 mark against USD.

Spot gold retreated slightly to $4485/oz after breaking $4500; spot silver broke $70, up nearly 1% at $72.11/oz; platinum soared above the historic high of $2300/oz;

London copper hit a record high, now at $12,159.50/ton; London tin rose over 2% on the day to $43,460/ton; spot palladium up over 4% to $1,933.49/oz; WTI crude up over 0.45% to $62/barrel

Bitcoin fell 0.8% to $86,928.49, Ethereum down 1.4% to $2,930.79

The yen strengthened for the third straight session, now at 155.77 against the USD. Traders are closely watching for intervention signals after Tokyo warned against excessive exchange rate volatility.

After Korean authorities issued warnings over won depreciation, the won responded by rallying. Meanwhile, the won is now nearing the psychologically significant 1,500 level against USD, a threshold only briefly breached during extreme market stress, such as the Asian Financial Crisis in 1997 and the global financial crisis.

The Bank of Korea and the Ministry of Finance jointly said on Wednesday that they had held multiple meetings over the past two weeks to discuss the recent weakness in the won. The Ministry also announced several new tax measures to stabilize the forex market.

Precious metal prices surged, with gold breaking through $4,500/oz for the first time, platinum also hitting record highs above $2,300/oz with a gain of over 150% this year, and silver continuing its strong rally after breaking $70.

The price of spot gold broke through $4,500/oz for the first time ever, with a year-to-date gain of over two-thirds, set for its best annual performance since 1979. Gold's strong performance this year is the result of several factors. In addition to the direct catalyst of geopolitical risk, deeper drivers include changes in macroeconomic and policy conditions.

Spot silver up nearly 1% to $72.11/oz, with price gains driven by both investment demand and industrial usage.

This surge in platinum is mainly due to tightening supply and demand fundamentals as well as potential trade policy risks. According to Bloomberg, continued supply disruptions in South Africa, a major producer, have pushed the platinum market towards a third straight year of shortage. At the same time, high borrowing costs have led industrial users to prefer leasing rather than directly purchasing platinum, further tightening the spot market.

London copper hit a record high, now at $12,224/ton.

Chicago wheat futures rose again Tuesday, posting a five-day rally, the longest since April. Black Sea Odessa port facilities were damaged and electricity shortages disrupted grain export logistics; the US central and southern plains faced record high temperatures and drought, causing serious moisture deficits. Together, these factors have caused markets to re-evaluate supply prospects and brought risk premiums back, providing strong momentum for wheat prices.

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