Global markets traded cautiously on Tuesday, with Asian markets steadying while precious metals hit fresh record highs, even as geopolitical developments involving the United States, Venezuela, and Greenland added new layers of uncertainty.
Investors also looked ahead to key US economic data, including an updated reading on third-quarter GDP, in a holiday-shortened but data-heavy week.
Asian markets lift as investors eye US data
Asian shares were mixed on Tuesday in the holiday-shortened week.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.39% early in the session, while Japan’s Nikkei fell 0.2%.
China’s CSI 300 was up 0.24%, South Korea’s Kospi index was up 0.28%, while India’s Nifty 50 was up 0.03%.
US equity futures were largely steady, with S&P 500 futures down 0.05% and Nasdaq futures almost unchanged at a 0.02% increase.
Market sentiment remained supported by expectations that the US economy would continue to grow at a solid pace in the third quarter.
Economists forecast annualised GDP growth of 3.3%, slightly slower than the previous quarter, partly reflecting a pullback in imports after earlier front-loading ahead of tariffs.
Investors are also bracing for a backlog of US economic releases delayed by last month’s record government shutdown.
Currency markets were dominated by the Japanese yen, which found some support amid speculation of possible intervention by Tokyo.
The yen fell about 0.6% to 156 per dollar after Japan’s finance minister warned against excessive currency moves.
The Bank of Japan’s widely anticipated rate hike last week did little to shift expectations for a gradual policy path ahead.
Venezuela oil seizures add to market unease
In another development rattling markets, Trump confirmed that the US would retain oil and tankers seized near Venezuela as part of an escalating blockade of sanctioned shipments.
The US has already intercepted multiple vessels carrying Venezuelan crude and is pursuing another, according to the president.
Trump suggested the seized oil could be sold, stored, or added to strategic reserves, while reiterating pressure on Venezuelan President Nicolas Maduro.
Venezuela, a founding OPEC member with the world’s largest proven oil reserves, exports about 749,000 barrels per day, with more than half going to China.
The intensifying standoff, combined with US military activity in the Caribbean, has heightened concerns over supply disruptions, helping underpin gold prices even as oil prices eased slightly in early trading.
Gold and silver surge to fresh records
Precious metals stole the spotlight, with gold and silver surging to all-time highs as investors sought safety amid rising geopolitical tensions and expectations of easier US monetary policy.
Spot gold rose 0.9% to $4,486.41 per ounce, after touching a record $4,497.55 earlier in the session.
US gold futures jumped 1.1% to $4,519.70.
Silver also climbed sharply, rising 1% to $69.70 after hitting a fresh peak of $69.98.
Analysts pointed to strong investment inflows, supply constraints, and industrial demand, with silver’s year-to-date gains now far outpacing those of gold.
Market participants cited US actions against Venezuelan oil shipments, as well as uncertainty over future Federal Reserve leadership, as key drivers.
Bullion has gained more than 70% this year, supported by rate-cut bets, central bank buying, de-dollarisation trends, and renewed exchange-traded fund inflows.
Trump reignites dispute over Greenland
Geopolitical tensions were further inflamed after US President Donald Trump appointed Louisiana Governor Jeff Landry as a special envoy to Greenland, reviving a long-running and controversial ambition to bring the Arctic island under US control.
Trump said the US needed Greenland for “national protection” and claimed it was essential for national security.
The move drew a sharp response from Denmark, which said it would summon the US ambassador for an explanation, and from Greenland’s prime minister, who insisted the island’s future must be decided by its people.
European Commission President Ursula von der Leyen expressed solidarity with Denmark and Greenland, underscoring concerns among US allies.
Greenland, a semi-autonomous territory within the Kingdom of Denmark, is strategically located between North America and Europe and has growing importance as Arctic shipping routes open and access to mineral resources increases.
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