Markets Today: Silver Jumps 2.8%, Gold Eyes $4500/oz, FTSE 100 Consolidates Above 10000. Fed Speakers Ahead

[Ben Graham]

Asia Market Wrap - Asian Shares Hit Record HIghs

Most Read: 2026 US Dollar Forecast: How the Fed, Government Spending, and AI Will Drive Volatility

Asian stock markets reached new record highs on Tuesday, following a strong performance in the United States where the Dow Jones index hit its own all-time peak.

The MSCI index of emerging Asia equities rose by 1.1% to its highest level ever, led largely by Japanese stocks which jumped 1.6%.

Markets in Taiwan and South Korea also rallied to set new records.

Meanwhile, Chinese markets performed very well, with Hong Kong rising 1.8% and mainland Chinese stocks reaching their highest prices since 2015.

French Inflation Rate Slows

France's annual inflation rate cooled down to 0.8% in December 2025, reaching its lowest level in seven months and coming in lower than experts predicted. This drop was mainly caused by energy prices falling sharply, particularly for fuel.

However, this was partially balanced out by rising food costs, especially for fresh produce, while the prices for services and tobacco remained steady. Compared to the previous month, overall prices rose just a tiny bit (0.1%) due to higher holiday transport costs, but this increase was still smaller than expected.

When measured by broader European standards, the inflation rate was even lower at 0.7%.

European Session - European Stocks Hold Near Record-Highs

European stock markets remained stable on Tuesday, maintaining the momentum that pushed them past a major milestone the day before.

Despite rising political tensions involving the US and Venezuela, investors remain confident in the economy, with mining companies leading the gains thanks to higher precious metal prices.

The main European index rose slightly, while markets in Germany and Spain hit all-time record highs, supported by hopes that government spending in Germany will boost the region's growth. Traders are now waiting for important manufacturing and inflation reports from across Europe and the US to see if the good news continues.

Meanwhile, shares of the delivery company InPost jumped nearly 15% after it announced it might be bought out.

On the FX front, the US dollar dropped slightly for a second straight day on Tuesday as anxiety over US military actions in Venezuela began to fade.

Global stock markets rallied, supported by Federal Reserve officials hinting at more supportive interest rate policies, which dampened demand for the dollar.

While the overall dollar index fell by 0.1%, other currencies took advantage of the weakness; the British Pound and Euro rose slightly, while the Australian dollar had a particularly strong day, reaching its highest level in over a year.

Currency Power Balance

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Source: OANDA Labs

Oil prices dropped on Tuesday because investors expect global supply to outweigh demand, especially now that the US has captured Venezuelan President Nicolas Maduro, a move markets believe could eventually lead to more Venezuelan oil exports.

Brent crude fell slightly to around $61.48 a barrel, while US crude dipped to $58.00.

In contrast, precious metals had a strong day.

Gold rose 0.4% to a one-week high, driven by hopes for lower interest rates and investors seeking "safe" assets during the political unrest.

Silver jumped 2.8%, while platinum and palladium gained roughly 2% each, continuing the massive rallies these metals began in 2025.

Read More:

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Economic Calendar and Final Thoughts

The European session is quiet moving forward with most of the data already released this morning.

Moving into the US session and the only data release will be the non-market-moving final S&P PMIs for December. Attention will likely be on the Fed side where we’ll hear from Barkin (hawkish-leaning, non-voter) and Miran (ultra-dove, voter) who could shake up some volatility.

A side note around the US dollar, is that January is usually a positive month for the greenback based on history and seasonality. Keep that in mind as you look into possible trade setups involving the US Dollar.

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Chart of the Day - FTSE 100

From a technical perspective, the FTSE 100 index has finally breached the psychological 10000 mark.

Price has pulled back since with bouts of volatility and that shouldn't be a surprise. When price breaches such psychological levels we do tend to see some volatile price swings.

The one concern for bulls at the moment is that the index is hovering in overbought territory which means a pullback may be imminent.

Immediate support which may be tested in the near-term include the 9973 and 9943 handles respectively.

However, a key level on the four-hour chart for bullish continuation will be the psychological 10000 mark. A break of this level could bring a deeper correction into play.

FTSE 100 Index Four-Hour Chart, December 6, 2025

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Source: TradingView.com (click to enlarge)

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