Item 1 of 2 German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, December 30, 2025. REUTERS/staff
SYDNEY/LONDON, Dec 30 (Reuters) – European shares hit record highs on Tuesday after a subdued session in Asia as investors counted bumper gains heading into year-end, while silver and gold found their footing after a sharp pullback from record highs took some froth off their searing rally.
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GOLD AND SILVER BOUNCE BACK, ON TRACK FOR BIG ANNUAL GAINS
Liquidity across most markets remained thin in a holiday-shortened week, which exacerbated volatile price swings in silver and other precious metals overnight. After hitting a new record around $84 per ounce, silver slumped 8.7% in the biggest one-day fall since August 2020, bringing gold and copper down with it.
The white metal bounced 2.5% on Tuesday to $74.1 per ounce and was still on track for a staggering annual gain of 156%. Gold also gained 0.7% to $4,361 per ounce, after tumbling 4.4% overnight.
Tony Sycamore, analyst at IG in Sydney, said the initial gap higher in silver was likely to do with stop losses, price action and panic buying as well as the Chicago Mercantile Exchange raising margin requirements. However, the move soon exhausted itself with no real buyers stepping in at those elevated levels.
“We’ve had a cooling in the precious metals, but I don’t think this trend is over. We still got deficits. We still got nation stockpiling. We’ve got export restrictions,” Sycamore said. “This generational bubble – has it finished? Not sure. Jury’s out with that.”
U.S. stock futures , were flat to slightly down. Overnight, Wall Street finished lower as heavyweight technology stocks retreated from last week’s gains.
Still, U.S. stocks are on course to end 2025 near record highs, having notched double-digit gains in a tumultuous year dominated by tariff wars, central bank policy and simmering geopolitical tensions.
“Financial conditions are easy. On top of that, we’re going to get fiscal stimulus in the first half of 2026 from most of the key economies – Japan, China, Germany, and the United States – which is supportive of markets,” said Zurich Insurance Group’s chief market strategist Guy Miller.
“So this allows equities, in particular, to do well. And on top of that, because the global economy is in good shape, corporate earnings are going to be decent, certainly through the first half of 2026.”
DOLLAR’S BAD YEAR
In currency markets, the U.S. dollar was steady ahead of the minutes of the Federal Reserve’s December meeting, which are expected to showcase a divided central bank unsure of its policy path next year. The dollar index is on track for an annual decline of almost 10%, its steepest in eight years.
The yen hovered at 155.85 per dollar , some distance away from the 158-160 area that could trigger intervention from Japanese authorities. The euro was at $1.1775, on course for an impressive gain of 13.7% this year.
Rate cuts in the United States and prospects of more next year have weighed on the U.S. dollar and helped Treasuries rally, especially at the short-end. Two-year yields slipped one basis point to 3.4586%, down for a fourth straight session. For the year, they are down almost 80 bps.
The 10-year yield is set for an annual drop of 46 bps.
Oil prices held largely steady on Tuesday after gaining over 2% overnight. Brent crude futures were flat at $61.92 a barrel, having jumped 2.1% on Monday, while U.S. West Texas Intermediate crude was off 0.1% at $58.01 a barrel.
Reporting by Stella Qiu; additional reporting by Vidya Ranganathan and Dhara Ranasinghe; Editing by Shri Navaratnam, Kirsten Donovan and Joe Bavier
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