Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
South Korea Factory Activity Hits 18-Month High as Export Demand Surges 
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair 
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
China Manufacturing PMI Slips Into Contraction in January as Weak Demand Pressures Economy 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
U.S. Stock Futures Slip as Markets Brace for Big Tech Earnings and Key Data 
Oil Prices Surge Toward Biggest Monthly Gains in Years Amid Middle East Tensions 
Indonesia Stocks Face Fragile Sentiment After MSCI Warning and Market Rout 
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster 
India Budget 2025 Highlights Manufacturing Push but Falls Short of Market Expectations 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
Asian Currencies Hold Firm as Dollar Rebounds on Fed Chair Nomination Hopes 
China Home Prices Rise in January as Government Signals Stronger Support for Property Market 
Gold Prices Pull Back After Record Highs as January Rally Remains Strong 
Gold prices slipped in Asian trading on Monday as renewed risk appetite and a surge in expectations for a December U.S. Federal Reserve rate cut reduced demand for the safe-haven metal. Markets reacted to a rebound in equities and improved sentiment across risk-driven assets, alongside reports suggesting the U.S. is working toward facilitating a Russia-Ukraine ceasefire.
Despite the downward pressure, gold remained above the $4,000 per ounce mark, supported by ongoing concerns over global fiscal stability and heightened geopolitical tensions stemming from a China-Japan diplomatic dispute. Anticipation of several key U.S. economic reports scheduled for release this week also helped limit deeper losses, reinforcing expectations of potential near-term rate reductions.
Spot gold edged down 0.3% to $4,052.53 per ounce, while December gold futures dropped 0.7% to $4,086.10 by 01:07 ET (06:07 GMT). The metal lagged behind other precious commodities as traders sharply increased their bets on a 25-basis-point rate cut at the Fed’s December 9–10 meeting. According to CME FedWatch, the probability jumped to 67.3%, up significantly from last week’s 39.8%. Comments from New York Fed Governor John Williams, who noted easing inflation risks and potential threats to the labor market, fueled the shift in expectations.
Other precious metals outperformed gold, with spot platinum climbing 1.4% to $1,537.65 per ounce. Spot silver was slightly lower at $49.92385 per ounce.
Investors are now focused on a packed week of long-delayed U.S. economic data releases, expected to provide fresh insight into the country’s economic trajectory heading into December. Reports due include industrial production, capacity utilization, PPI, retail sales, building permits, durable goods, weekly jobless claims, and importantly, third-quarter GDP numbers. The Fed’s preferred inflation gauge, the PCE price index, is also set for publication.
These data points—delayed due to an extended government shutdown—may help clarify the economic outlook, though the lack of October figures means the Federal Reserve could still face uncertainty heading into its final meeting of the year, where policymakers remain split on further rate cuts.
