Precious metals fall again, Asian stocks swing as traders wind down

[HONG KONG] Precious metals extended losses on Tuesday (Dec 30) on profit-taking after hitting recent records, while equities fluctuated in quiet trade as investors wound down ahead of the New Year break.

Traders were taking it easy in the last few days of 2025 following a stellar 12 months that have seen tech firms push several stock markets to all-time highs, while bitcoin, gold and silver have also enjoyed multiple peaks.

Minutes from the Federal Reserve’s most recent policy meeting, at which it cut interest rates a third straight time, are due to be released later in the day and will be scanned for an idea about whether a fourth can be expected in January.

The US central bank’s monetary easing in the back end of this year has been a key driver of the markets’ rally, compounding a surge in the tech sector on the back of the vast amounts of cash pumped into all things AI.

It has also helped offset recent worries about a possible tech bubble and warnings that traders might not see a return on their investments in artificial intelligence for some time.

Still, Asian markets have enjoyed a healthy year, with Seoul’s Kospi piling on more than 75 per cent and Tokyo’s Nikkei 225 more than 25 per cent, both having hit records earlier in the year.

Still, both edged down on Tuesday, with Shanghai, Sydney and Taipei also lower. Hong Kong, Singapore, Wellington and Jakarta rose.

The mixed performance followed losses for all three main indexes on Wall Street.

The big moves of late have been seen in precious metals, with gold hitting a record just shy of US$4,550. Silver, meanwhile, topped out at US$84 after soaring around 150 per cent this year.

Investors have been piling into commodities on bets for more US rate cuts, a weaker US dollar and geopolitical tensions.

Silver has also been boosted by increased central bank purchases and supply concerns.

However, both metals have pulled back sharply this week on profit-taking, with gold now around US$4,340 and silver at US$73.50.

Oil dipped, having jumped more than two per cent on Monday when investors rowed back bets on peace talks to end Russia’s war with Ukraine as a meeting between US President Donald Trump and Ukrainian counterpart Volodymyr Zelensky ended with little progress.

That surge followed on Friday’s similar-sized rally on optimism for a breakthrough to end the nearly four-year conflict.

An end to the war could see sanctions on Russian oil removed, which would see a huge fresh supply hit the market.

Bitcoin, which has tumbled since spiking above US$126,000 in October, was stabilising just below US$90,000 after a shaky end to the year. AFP