World shares are mixed after Wall St sets a record, while gold and silver fly higher

European markets retreated Wednesday while Asian shares showed mixed performance, as precious metals prices surged to new heights ahead of the Federal Reserve’s anticipated interest rate decision.

Gold prices jumped 3.9% to $5,279.30, while silver soared 6.7% to $112.69, reflecting investors’ growing preference for traditional safe-haven assets amid global economic uncertainties. Central banks and major investors have increasingly shifted away from dollar holdings in favor of precious metals, viewing them as more stable stores of value during turbulent market conditions.

European indices broadly declined, with Germany’s DAX dropping 0.2% to 24,837.57, France’s CAC 40 falling 1.1% to 8,065.62, and Britain’s FTSE 100 slipping 0.2% to 10,188.28. The downward trend comes as markets await the U.S. Federal Reserve’s decision on interest rates, expected later Wednesday.

The Fed is widely anticipated to maintain its current interest rate policy, though investors are keenly watching for signals about potential rate cuts later in the year. Persistent inflation above the central bank’s 2% target continues to complicate monetary policy decisions, as lower interest rates could potentially exacerbate price pressures while stimulating economic growth.

In contrast to European markets, Asian indices generally performed well. South Korea’s Kospi reached a record high, gaining 1.7% to close at 5,170.81, propelled by strong performances in the technology sector. Semiconductor manufacturer SK Hynix was particularly notable, climbing 5.1%.

Japan’s Nikkei 225 recovered from early losses to finish marginally higher at 53,358.71. Technology conglomerate SoftBank Group contributed significantly to this recovery, rising 3.7% following reports of increased investment plans in artificial intelligence company OpenAI.

The currency markets have witnessed significant volatility, with the dollar rebounding slightly against the Japanese yen to 152.68, up from 152.19. However, this represents a nearly 4% decline from last week when the dollar approached 160 yen, prompting warnings of potential intervention from both Japanese and U.S. officials. Similarly, the euro traded at $1.1983, down from $1.2041, though it remains substantially stronger against the dollar compared to recent months.

A broader dollar weakness index has fallen to its lowest point since 2022, reflecting what some market observers have termed a “Sell America” sentiment. This trend has been exacerbated by President Donald Trump’s recent threats of tariffs against European countries that opposed U.S. interests regarding Greenland, as well as concerns about the substantial U.S. government debt burden.

U.S. equity futures showed mixed signals, with S&P 500 futures gaining 0.3% while Dow Jones Industrial Average futures remained largely unchanged. This follows Tuesday’s trading session, where the S&P 500 rose 0.4% to reach a new all-time high of 6,978.60, while the Dow fell 0.8% to 49,003.41 and the Nasdaq composite climbed 0.9% to 23,817.10.

Market sentiment may be further influenced by a concerning report from the Conference Board indicating that U.S. consumer confidence dropped to its lowest level since 2014 last month, falling below even pandemic-era readings when economists had expected slight improvement.

Investors are now focusing on upcoming earnings reports from market-moving technology giants, including Meta Platforms, Microsoft, and Tesla on Wednesday, followed by Apple on Thursday. These results will be crucial in justifying the high valuations that have driven stock markets to record levels, as corporate profits ultimately need to align with stock price growth over the long term.

In the energy markets, U.S. benchmark crude oil traded slightly higher at $62.40 per barrel, while Brent crude, the international standard, slipped to $66.50 per barrel.