Gold hit a new record above $4,388, while silver also struck a new peak

Asian markets rallied Monday and gold hit a record high, while worries over AI spending also subsided.

Tech firms led the gains Monday with Samsung Electronics, TSMC and Renesas among the best performers.

Hong Kong, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei and Manila all enjoyed healthy advances.

Tokyo was the standout, piling on two percent thanks to a weaker yen.

Gold hit a new record above $4,388, while silver also struck a new peak.

Stephen Innes at SPI Asset Management said: Asian equity markets are stepping onto the floor with a constructive bias, taking their cue from Friday’s solid rebound in US stocks and the growing belief that the final stretch of the year still belongs to the bulls.

Investors were back in the saddle for the final business days before Christmas, having had a minor wobble earlier in the month on concerns that the U.S. central bank would hold off easing monetary policy further in the early part of 2026.

Figures last week showing US unemployment hit a four-year high in November came as a report indicated the rise in consumer prices slowed more than expected.

That stoked bets on the central bank lowering borrowing costs early next year. Investors had pared their forecasts after the bank indicated it could take a pause on further cuts in its post-meeting statement earlier this month.

This labour market softening and inflation moderation strengthened central bank easing expectations for 2026, wrote IG market analyst Fabien Yip.

However, she added that the low inflation reading may prove temporary as shutdown-related data collection disruptions likely suppressed the figure, which could normalise higher once data gathering processes resume.