Precious metals retreat as Asian stocks fluctuate

Precious metals extended their losses on Tuesday as investors booked profits after recent record highs, while Asian stock markets swung in thin trading as participants wound down ahead of the New Year.

Trading was subdued in the final days of the year following a strong 12 months in which technology stocks drove several markets to record levels, while bitcoin, gold and silver also reached multiple peaks.

Investors are awaiting the release later in the day of minutes from the Federal Reserve’s most recent policy meeting, where it cut interest rates for the third consecutive time. The minutes are expected to provide clues on whether further easing could be considered in January.

The Fed’s rate cuts in recent months have been a major driver of market gains, reinforcing a rally in technology stocks fueled by heavy investment in artificial intelligence. This momentum has helped offset concerns about stretched valuations and warnings that returns from AI investments may take time to materialize.

Asian markets have nevertheless posted strong gains this year. South Korea’s Kospi has risen more than 75 percent, while Japan’s Nikkei 225 has gained over 25 percent, with both indices having touched record highs earlier in the year.

On Tuesday, the Nikkei and the Kospi edged lower, while markets in Shanghai, Sydney and Taipei also declined. Shares rose in Hong Kong, Singapore, Wellington and Jakarta. The mixed performance followed losses across all three major Wall Street indexes overnight.

Recent market volatility has been most evident in precious metals. Gold recently climbed to a record just below $4,550, while silver peaked at $84 after surging about 150 percent over the year. Both metals benefited from expectations of further US rate cuts, a weaker dollar and ongoing geopolitical tensions, as well as increased central bank demand and supply concerns in silver.

However, profit-taking has triggered a sharp pullback, with gold trading around $4,340 and silver near $73.50.

Oil prices slipped after jumping more than two percent on Monday, as investors scaled back expectations for a near-term peace deal between Russia and Ukraine following limited progress at talks between US President Donald Trump and Ukrainian President Volodymyr Zelensky. A potential end to the war could see sanctions on Russian oil lifted, adding significant supply to global markets.

Bitcoin, which has fallen since reaching a peak above $126,000 in October, was stabilising just below $90,000 after a volatile end to the year.

Key figures at around 0230 GMT

Tokyo – Nikkei 225: down 0.1 percent at 50,465.35
Hong Kong – Hang Seng Index: up 0.2 percent at 25,675.05
Shanghai – Composite: down 0.3 percent at 3,954.87
Euro/dollar: up at $1.1770 from $1.1766
Pound/dollar: down at $1.3499 from $1.3504
Dollar/yen: up at 156.30 from 156.06
Euro/pound: up at 87.20 pence from 87.00
WTI crude: down 0.3 percent at $57.91 per barrel
Brent crude: down 0.3 percent at $61.75 per barrel
New York – Dow: down 0.5 percent at 48,461.93 (close)
London – FTSE 100: flat at 9,866.53 (close)