Markets Today: Gold Breaches $4400/oz, Silver Up 2.75%, Nikkei Rises 1.9% & FTSE 100 Eyes Short-Term Pullback

[Ben Graham]

Asia Market Wrap - Nikkei Rises 1.9% as Global Equities Rise

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Stock markets around the world are rising as investors feel optimistic about a strong finish to the year, encouraged by recent gains in the US.

A key index that tracks global stocks has gone up for three days in a row, reaching its highest level since mid-December, and is predicted to grow nearly 20% in 2025.

In Asia, Japan's Nikkei climbed 1.9% because a cheaper currency is expected to help companies that sell goods abroad make more money. Similarly, Chinese stocks saw gains, while Singapore's market reached a new record high.

European Session - European Shares On Course to Open Lower

European stock markets are expected to open with small losses on Monday, pausing after last week's rally as trading slows down for the short Christmas holiday week.

Even with lighter trading activity expected, investor confidence remains high due to renewed excitement about AI companies and hopes that the US Federal Reserve will lower interest rates next year. Traders are also less worried about the European Central Bank raising rates in the future.

However, there is still some caution as investors watch the war in Ukraine, following comments from Russia that recent peace proposals haven't improved the situation. In economic news, the UK is set to release its final growth figures later today, while early trading shows major European indexes down by roughly 0.1% to 0.2%.

On the FX front, the Japanese yen remained very weak on Monday, hovering near record lows against the Euro and Swiss Franc.

Traders feel confident betting against the yen because the Bank of Japan hasn't signaled any plans to raise interest rates, even though government officials have warned they might step in to support the currency.

The yen also sat near an 11-month low against the US dollar and a 17-month low against the Australian dollar. While the US dollar dipped slightly to 157.37 yen, it remains close to recent highs.

Meanwhile, the Swiss franc reached a new record against the yen, and the Australian dollar climbed to its strongest level since last July.

Currency Power Balance

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Source: OANDA Labs

Silver was the standout performer in commodities, hitting a new record high of $69.44/oz, which brings its total gains for the year to nearly 140%. Gold also increased in value, rising 1.5% to breach $4400/oz.

In the energy market, oil prices went up after the US stopped a Venezuelan oil tanker and began chasing another, marking the third such incident in under two weeks. As a result, Brent crude rose 0.8% to $60.96 a barrel, and US crude increased by the same percentage to $56.99 a barrel.

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Economic Calendar and Final Thoughts

It is a quiet day on the calendar for European data releases but there are a few ECB policymakers who will be speaking during the session.

The US session is equally quiet from a data perspective with Canadian PPI the only major data release during the session. Markets may focus on rising geopolitical risk as the US ramps up pressure on Venezuela.

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For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Chart of the Day - FTSE 100

From a technical standpoint, the FTSE 100 index is eyeing a pullback this morning.

However, given the mood around global equity futures in the Asian session, i wonder whether such a move will prove sustainable?

The index is approaching support at the 9850-9860 area with a break below opening up a deeper correction toward the 9800 and 9760 support areas.

The period-14 RSI does remain comfortably above the 50 neutral level which hints at bullish momentum remaining strong at the present time.

FTSE 100 Index Daily Chart, December 22. 2025

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Source: TradingView.com (click to enlarge)

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