Stocks rise, precious metals extend rally

Precious metals extended their runaway rally from last year, with spot gold up 1.5% to $4,378.32 an ounce, while spot silver climbed 3.6% to $73.85 per ounce

U.S. stocks began 2026 on a positive note in holiday-thinned trade as investors braced for a year set to test the AI-led rally, usher in a change of guard at the central bank and potentially more market turbulence.

Moves across asset classes were subdued with momentum on Friday carrying over from a stellar run in 2025, while liquidity remained low due to the holidays.

Markets in Japan and China were closed, while some others returned from their New Year festivities.

Precious metals extended their runaway rally from last year, with spot gold up 1.5% to $4,378.32 an ounce, while spot silver climbed 3.6% to $73.85 per ounce.

Gold’s 2025 rise was its biggest in 46 years, while silver and platinum made their largest gains on record, driven by a cocktail of factors including the central bank’s rate cuts, geopolitical flashpoints, robust central bank buying, and ETF inflows.

Vishnu Varathan, Mizuho’s head of macro research for Asia ex-Japan, said the rally also underscores “hedges against entrenching USD debasement risks”.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.5% and Hang Seng Index added 2.4%.

S&P 500 futures advanced 0.45%, while Nasdaq futures rose 0.67%.

European futures were mixed, with EUROSTOXX 50 futures down 0.5%.

Stocks made strong gains in 2025 as markets weathered a year of tariff wars and geopolitical strife.

The 2025 U.S. equity market rally has been fuelled by AI euphoria, robust corporate earnings, share buybacks and strong retail flows, said Saira Malik, chief investment officer at Nuveen.

Malik added: Bouts of volatility, such as those sparked by macro, geopolitical and policy uncertainty, as well as periodic shifts in sentiment around AI, are likely to remain a feature of equity markets, meaning investors should expect more hiccups in the coming year.