Gold prices have surged to another record high, extending its historic rally as investors balanced stabilizing moves in Japan’s bond and currency markets with a heavy slate of U.S. economic data ahead of the holidays.

Precious metals outperformed while equities showed mixed signals, with positioning data pointing to growing caution beneath the surface of year-end markets.

1.Gold and precious metals extend historic rally

Gold climbed to a fresh all-time high on Tuesday, marking the 50th session this year in which the metal has set a new record, as investors continued to favor precious metals amid easing yields, currency volatility and longer-term inflation hedging.

Gold Futures hit as high as $4,530.30/oz, marking a fresh all-time high, while gold spot prices traded as high as $4,497.82/oz.

Yardeni Research amended its outlook for gold prices following the latest surge. “When the price of an ounce of gold rose above $3,000 at the start of this year, we projected it would reach $4,000 by the end of this year and $5,000 by the end of next year,” Yardeni said.

“We are raising our year-end 2026 target to $6,000. We still expect to see $10,000 hit by the end of the decade.” 

Silver Futures also rose to a new peak, while Platinum Futures and Palladium Futures also extended gains. In contrast, Brent Oil Futures and Crude Oil WTI Futures were mostly flat.

2.Japan bonds and yen find footing after BOJ volatility

In Japan, government bonds and the yen showed signs of stabilization after sharp moves following the Bank of Japan’s 25 basis-point rate hike on Friday. Yields surged initially after policymakers signaled further tightening could be ahead, but subsequent weakness in the yen raised uncertainty about how aggressively the central bank could proceed without stoking inflation.

Currency pressures began to ease after Finance Minister Satsuki Katayama said Japan had a “free hand” to act in foreign-exchange markets and described recent moves as speculative rather than fundamental. The USD/JPY pair traded about 0.7% lower on Tuesday.

Bond markets responded by retracing some of their recent losses. Japan 10-Year yields fell about 4.6 basis points, while Australia 10-Year yields declined 3.1 basis points.

Adding to the calmer tone, Prime Minister Takaichi said she would not pursue “irresponsible” tax cuts, easing concerns about fiscal pressure alongside tighter monetary policy.

3. U.S. data deluge ahead of the holiday break

Attention now turns to a busy slate of U.S. economic data, the final batch before Christmas. Investors will see a delayed third-quarter GDP report later in the session, though it is backward-looking and reflects conditions prior to the government shutdown.

More focus is likely to fall on the Conference Board’s December consumer confidence reading, particularly after November’s index dropped to its lowest level since the turmoil surrounding Liberation Day in April.

Other releases include November industrial production, preliminary October durable goods orders, and the Richmond Fed’s manufacturing index.

4. Novo Nordisk jumps on Wegovy pill approval

In corporate news, Novo Nordisk A/S Class B (CSE:NOVOb) shares jumped more than 5% in Copenhagen after the company won U.S. approval to sell a pill version of its blockbuster obesity treatment Wegovy.

The decision marks a significant step in expanding access to obesity drugs beyond injections and could broaden the addressable market.

Elsewhere, shares of Oersted AS (CSE:ORSTED) have stabilized on Tuesday after the Trump administration moved to suspend leases for several offshore wind projects under construction along the U.S. East Coast, citing national security concerns.

The decision directly affects Ørsted’s Revolution Wind and Sunrise Wind developments, alongside other major projects including Vineyard Wind 1, Dominion Energy’s Coastal Virginia Offshore Wind project and Equinor’s Empire Wind 1.

The company’s stock fell more than 13% following the announcement, marking the sharpest decline among offshore wind developers, while shares of Dominion Energy (NYSE:D) falling 3.7% on Monday.

5. Positioning cools into year-end, Citi says

Positioning data suggests investors have grown more cautious into year-end. Citigroup strategists led by Chris Montagu said investors added new short positions across U.S. equity-index futures last week, leaving net positioning near neutral.

Allocation to U.S. large caps has cooled, while positioning in the Russell 2000 has turned bearish, reversing the prior week’s optimism. Net profit levels improved across most indices, with the Nasdaq the notable exception.