
Gold climbed to a fresh record above $5,090 in early Asian trading, supported by heightened geopolitical risks and uncertainty around the U.S. Federal Reserve. Safe-haven demand increased as Russia-Ukraine peace talks ended without progress, fighting continued, and broader tensions persisted due to U.S. actions in Venezuela and threats related to Greenland.
Silver prices also continued their strong rally for a third straight session, trading near $110 per ounce in early Asian hours and reaching a fresh record high at $109.46.
At the same time, markets are focused on President Donald Trump’s upcoming choice for the next Fed Chair. Expectations that a more dovish appointment could lead to further interest rate cuts are adding support to gold, as lower rates reduce the opportunity cost of holding the precious metal.
Stock futures fell in early trading today as investors prepared for a busy week packed with major corporate earnings and the Federal Reserve’s first policy meeting of the year. Dow futures dropped 0.6%, while S&P 500 and Nasdaq-100 futures slid 0.8% and 1.1%, respectively.
Companies like Apple, Meta and Microsoft, are set to report earnings. The season has been strong so far, with about 76% of companies beating expectations, though some stocks like Intel and Netflix still declined despite solid results. Markets are also focused on the Fed’s decision on Wednesday, with rates expected to stay unchanged, but investors watching closely for signals on future rate cuts.
EUR/USD rose about 0.3% to near 1.1900 in early Asian trading, supported by continued U.S. dollar weakness ahead of this week’s Federal Reserve policy decision.
The Dollar Index slipped to around 97.00, its lowest level in four months, as investors remain cautious about the long-term outlook for U.S. trade relations despite the recent easing of tensions with Europe. Markets expect the Fed to hold rates steady at 3.50%–3.75% on Wednesday, marking its first pause after three rate cuts totaling 75 bps in late 2025.
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