Markets Today: Commodities Extend Gains as Silver Breaches $75/oz, Japan Industrial Output Slides

[Ben Graham]

Asia Market Wrap - Nikkei Posts Second Successive Weekly Rise

Most Read: Santa Claus Rally Strategy: How to Trade the S&P 500's Most Reliable Seasonal Pattern

Stocks continued their end-of-year rise as investors feel positive about economic growth and expect companies to earn more money.

A key global stock index increased for the seventh straight day, even though trading was quiet because many markets, such as Australia and Hong Kong, are still closed for holidays.

Japan's Topix Index reached a new record high after a 0.5% rise. South Korean stocks also climbed 0.6%, securing a massive 72% gain for the year, which makes it the world's best-performing major market.

Meanwhile, Chinese stocks edged higher and are on track for their best year since 2020 with an 18% increase.

Together, these rallies pushed the broad index for Asian shares to its highest level since mid-November, showing a total growth of 25% for the year.

Japan Industrial Output Falls - Steepest Contraction Since January 2024

Japan's factory output fell by 2.6% in November compared to the previous month, marking the biggest drop since January 2024.

This decline was worse than experts expected and reversed the gains seen in October, largely due to weaker demand from overseas and companies adjusting their inventory levels.

The slump was driven by sharp decreases in the production of electronics, cars, and metal products.

Compared to the same time last year, industrial output shrank by 2.1%, which is the first yearly decline in three months and the steepest drop since May.

European & US Session - US Equities Edged Lower

US stock markets are expected to open slightly lower on Friday as traders return from the Christmas holiday. Before the break, major stock indexes hit new record highs, even though strong economic growth data suggests the Federal Reserve might wait longer than expected to cut interest rates.

In company news, Nike shares jumped 4.6% after it was revealed that Apple CEO Tim Cook bought a large amount of the stock.

Conversely, Intel shares fell slightly after reports that Nvidia stopped testing a new chip manufacturing process with them. While the market is open for a full day on Friday, trading activity is likely to be slow

On the FX front, the Chinese yuan dropped against the dollar on Friday after the central bank signaled it does not want the currency to rise too quickly. The yuan had been hovering very close to the important 7-per-dollar level.

To control this, the bank set the daily reference rate at 7.0358 before trading began. While this is the strongest rate since September 2024, it was weaker than experts expected, sending a clear message that the government wants to slow down the currency's appreciation.

Currency Power Balance

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Source: OANDA Labs

Metals On a Tear - Silver Hits $75/oz

The biggest news came from precious metals, which hit new records due to global conflicts and the weak dollar.

Silver hit a historic milestone of $75 on Friday, leading a broader surge in precious metals that also saw gold and platinum reach all-time highs.

This rally is being fueled by rising global tensions and the expectation that the US will cut interest rates next year, making metals an attractive investment. Silver has been the standout performer, jumping 158% this year due to supply shortages and heavy industrial demand.

Platinum and palladium, metals used in car manufacturing also rose sharply because supplies are tight, with platinum gaining about 160% for the year.

Overall, every major precious metal is on track to finish the week with strong gains.

Oil on Course for Weekly Gain

WTI crude oil prices climbed to $58.60 per barrel on Friday, putting them on track for a weekly gain due to rising political tensions.

The market rallied earlier in the week after President Trump increased pressure on Venezuela by seizing oil tankers as part of a US naval blockade. Although Venezuela provides only a small amount of the world's oil, these sales are essential for the country's income.

Read More:

Gold (XAU/USD) Jumps 2.4% and Breaches $4450/oz on Heightened Geopolitical Risk. Are Further Gains in Store for XAU/USD?

Palladium (XPD/USD) on Track for $2,000 as Metals Rally Extends – Price Outlook

Platinum reaches $2,000; Palladium breaks 2023 Highs – Metals Outlook

Economic Calendar and Final Thoughts

A quiet day from a data perspective.

Geopolitical risk is driving the precious metals market even in light of the thin liquidity environment. Keep an eye on the Geopolitical risks ahead of next week, as well as potential gaps which may materialize over the weekend.

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Chart of the Day - Silver (XAG/USD)

Silver like Gold does not have historical price action to look at which make its difficult to analyse from a technical perspective.

With that in mind i will be focusing on whole numbers such as the 77.50 and 80.00 handles to the upside.

On the downside, support may be located at 71.75 and the 70.00 handle.

Silver (XAG/USD) Daily Chart, December 26, 2025

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Source: TradingView.com (click to enlarge)

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