Safe-Haven Flows Pour into Precious Metals, Silver Hits a New All-Time High

Market Overview

U.S. equities came under broad pressure yesterday amid negative headlines surrounding the AI sector. Reports suggested that Oracles USD 10 billion data center financing project had encountered obstacles. Although the company later clarified that the project remains on track, the news reignited market concerns over the sustainability of AI-related capital spending. Oracle shares plunged more than 5%, dragging the Nasdaq nearly 2% lower, while the S&P 500 and Dow Jones Industrial Average both extended their losing streaks to four consecutive sessions.

Major technology names retreated across the board. Nvidia fell nearly 4%, Tesla dropped more than 4% after pulling back from record highs, and CoreWeave tumbled over 7%. The lone bright spot was Medline, the years largest IPO, which surged 41% on its first day of trading. Micron Technology bucked the broader trend, rising on the back of upbeat earnings results.

On the macro front, the U.S. Dollar Index snapped a two-day decline and rebounded from a two-month low. Following the release of U.K. inflation data, expectations for a Bank of England rate cut later this year intensified, driving a rebound in U.K. government bonds and pushing the British pound to a one-week low. Cryptocurrencies experienced sharp volatility, rallying during the early U.S. session before reversing lower. Bitcoin fell more than 5% from its intraday high, slipping below the USD 86,000 level, while Ethereum saw even steeper losses, at one point dropping nearly 8%.

Commodity markets strengthened across the board. Heightened geopolitical risks helped crude oil reverse four consecutive sessions of declines, rebounding more than 2% from a four-year low. Safe-haven demand fueled a strong rally in precious metals, with gold approaching a seven-week high and silver surging more than 6% intraday to set a new all-time high.

Key Themes to Watch

● Remarks from Federal Reserve Governor Christopher Waller

Waller stated that as the labor market shows signs of cooling and inflation remains under control, the Federal Reserve still has room to cut rates by 50 to 100 basis points. However, he emphasized that there is no urgency to act, signaling a preference for a steady and gradual path toward a neutral policy rate. According to Waller, the absence of a sharp deterioration in employment and well-anchored inflation expectations provide the conditions for measured rate cuts, allowing the Fed to balance growth support with inflation control.

● Trump Renews Threats of Additional Sanctions on Russia

The United States is reportedly considering new sanctions targeting the so-called “shadow fleet” of tankers used to transport Russian oil, as well as traders facilitating such transactions. These measures are being prepared as contingency options should Russian President Vladimir Putin reject a proposed peace agreement with Ukraine, with potential implementation as early as this week. Analysts note that the accumulation of geopolitical risks has refocused market attention on supply-side disruptions. Expectations of escalating sanctions on countries ranging from Venezuela to Russia have contributed to the recent rebound in oil prices.

Events in Focus (GMT+8)

21:30 US

U.S. November CPI (YoY, MoM, Core)

Initial Jobless Claims for the week ending December 13

December Philadelphia Fed Manufacturing Index

21:45 US

ECB President Christine Lagarde Monetary Policy Press Conference