Stocks Rise Near All-Time Highs as Silver Swings Sharply

Global equities hovered near record levels as the final trading week of a standout year for stocks got underway. Major benchmarks, which delivered solid double-digit gains over the past 12 months, showed signs of consolidation, while volatility rippled through commodity markets. Silver pulled back after surging to an unprecedented high, underscoring the heightened uncertainty gripping precious metals.

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The MSCI All Country World Index held steady after climbing to a fresh record last week, as a widely anticipated year-end rally continued to unfold. Futures tied to the S&P 500 slipped 0.2% following Friday’s close near an all-time high for the US benchmark.

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European equities traded in a narrow range, with investor attention shifting toward diplomatic discussions surrounding a potential peace agreement in Ukraine. Meanwhile, Asian stocks extended their advance, with a regional index logging its seventh consecutive day of gains.

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“Markets appear positioned to finish the year on a positive note, even though trading volumes remain thin,” said David Kruk, head of trading at La Financiere de l’Echiquier. “The broader backdrop is supportive, with strong US economic growth, easing inflation pressures, robust corporate earnings, and expectations that interest rate cuts will resume into 2026.”

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Precious metals were anything but calm. Silver swung sharply after breaking above $80 an ounce for the first time, marking a historic move fueled by speculative positioning and a persistent imbalance between supply and demand. Gold fell about 1%, while copper surged to a new record on the London Metal Exchange, reflecting tight supplies and resilient industrial demand.

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Metals have become one of the most closely watched segments of financial markets in recent months. Prices have been supported by aggressive buying from central banks, renewed inflows into exchange-traded funds, and a series of three interest-rate cuts from the Federal Reserve. Lower borrowing costs typically benefit non-yielding assets such as precious metals, and traders are increasingly pricing in further rate reductions in 2026.

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Early-week enthusiasm for metals was also fueled by commentary from Elon Musk over the weekend, which added to the growing investor buzz. Responding on X to a post about China’s export restrictions, Musk warned that the situation could have broader consequences, noting that silver plays a critical role in numerous industrial applications.

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Recent geopolitical developments have further strengthened the appeal of metals as perceived safe-haven assets. Rising tensions in Venezuela, where the US has blocked oil tankers, along with American military strikes targeting Islamic State positions in Nigeria, have added to market unease. With global silver inventories hovering near historic lows, concerns are growing that supply shortages could ripple across multiple industries.

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On the geopolitical front, President Donald Trump said discussions with Ukrainian President Volodymyr Zelenskiy regarding a possible peace deal had made “a lot of progress,” though he cautioned that finalizing an agreement could still take several weeks.

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Oil prices edged higher after the latest round of US-led talks failed to produce a breakthrough, while optimism grew after China pledged to bolster economic growth next year. Despite the recent bounce, crude remains on track for its fifth consecutive monthly decline in December, marking the longest losing streak in more than two years.

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In other markets, Bitcoin advanced nearly 2%, reflecting renewed risk appetite among investors, while a widely watched dollar index traded little changed.

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Global equities have had a stellar year. The MSCI world stock index is up nearly 22% in 2025, positioning it for a third straight annual gain and its strongest performance since 2019. Looking ahead, investors are increasingly focused on two dominant themes that could shape market direction in 2026: the continued evolution of artificial intelligence and the future path of US interest rates.

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Attention will turn later this week to the Federal Reserve, which is set to release minutes from its December policy meeting. Investors will scrutinize the document for clues on how policymakers view inflation trends, labor market conditions, and the timing of potential rate cuts next year.

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“Equities still have room to run into 2026,” said Nirgunan Tiruchelvam, an analyst at Aletheia Capital. “Lower interest rates, steady global growth, and the fact that most tariff-related risks appear to be already priced in suggest the rally could extend.”

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As the year draws to a close, markets appear to be balancing optimism with caution. Strong economic fundamentals and supportive monetary policy expectations are keeping investors engaged, even as thin holiday trading and geopolitical uncertainty inject bouts of volatility. For now, the momentum remains with risk assets — and investors are watching closely to see whether the rally can carry into the new year.

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