Trading on Wall Street presented a mixed picture on Friday as activity remained subdued following the Christmas holiday, while precious metals stole the show with a powerful rally to unprecedented levels.
Equities Drift in Thin Holiday Trade
US stock indices showed little decisive movement in early trading, with volumes expected to stay light throughout the session. The S&P 500 index edged higher by approximately 0.1%, maintaining its modest weekly advance. The blue-chip Dow Jones Industrial Average hovered near the flatline, showing minimal change. Meanwhile, the technology-heavy Nasdaq Composite gained around 0.2%, buoyed by strength in major tech stocks, including a notable rise in Nvidia shares.
Market analysts attributed the muted activity to the holiday-shortened week, with several international markets, including those in Hong Kong and Australia, remaining shut. Many investors have already closed their books for the year, leading to a quieter trading environment. Experts anticipate this subdued trend to persist until normal trading volumes resume in the new year.
Precious Metals Shine as the Ultimate Safe Haven
The standout story of the day was the blistering rally in gold and silver, which extended their sharp upward trajectory. Gold prices climbed nearly 1% to trade around $4,541 per ounce, setting a fresh all-time high. Silver outperformed, skyrocketing more than 4% to approximately $74.90 per ounce, after briefly piercing the significant $75 mark.
This remarkable surge is fueled by a confluence of factors. Strong safe-haven demand is at the forefront, as investors seek shelter from global political uncertainty, currency volatility, and persistent inflation concerns. Additionally, market expectations of further interest rate cuts by the US Federal Reserve in the coming year and sustained buying by central banks worldwide are providing solid support.
Stephen Innes of SPI Asset Management captured the sentiment, stating, "Gold is doing what gold does when the world loses its anchor: it becomes the anchor."
Commodities, Asia, and Currency Movements
In the energy complex, oil prices saw modest gains. US crude (WTI) added about 18 cents to reach $58.53 per barrel, while the global benchmark Brent crude rose 15 cents to $61.95 per barrel. Despite the uptick, oil prices remain substantially lower compared to their mid-year peaks.
Asian markets displayed a mixed performance. Japan's Nikkei 225 index advanced 0.7% after the cabinet approved a record defence budget exceeding 9 trillion yen ($58 billion) for the next fiscal year, boosting heavy industry and tech stocks. Markets in China posted slight gains, while indices in India and Thailand experienced declines.
In currency markets, the US dollar saw a slight strengthening against the Japanese yen, trading at 156.25. The euro, however, eased against the dollar to $1.1777. In the digital asset space, Bitcoin continued its recent positive momentum, rising about 2.2% to trade near $89,705.
With the year drawing to a close, the financial markets are entering a period of calm, setting the stage for what promises to be an eventful start to the new year.
