After the Bank of Japan's rate hike and continued intervention, silver hits new highs, US stocks stabilize, and investment opportunities in gold at a fraction of a gram emerge.

The proactive intervention by Japanese financial authorities has become the market focus this week. After the central bank raised interest rates by 25 basis points, the yen continued to be sold off, with USD/JPY rising by 1.39%, approaching the 158 level. Japanese Finance Minister Shunichi Katayama repeatedly warned that necessary measures would be taken to address excessive exchange rate fluctuations, signaling another direct intervention following the September US-Japan joint statement.

The short-term risk of unwind in carry trades has temporarily eased, boosting the attractiveness of risk assets. The VIX fear index plummeted by 11.57%, reflecting a clear improvement in market sentiment. All three major US stock indices rose, with the Nasdaq leading at +1.31%, the Dow up 0.38%, and the S&P 500 up 0.88%. Tech giants performed remarkably—Nvidia, as the strongest Dow component, rose 3.9%, Oracle gained 6.6%, and Broadcom increased 3.2%. This tech rebound is closely related to Micron Technology’s impressive quarterly earnings. In contrast, Nike’s China business weakness dragged the stock down by 10.5%.

Commodities are experiencing new price drivers. Silver surged to a historic high above $67, driven by investment demand and tight supply. Gold closed for the second consecutive day with a doji star, currently at $4,338.6 per ounce, up 0.14%. At this moment, the purchasing power of a small amount of gold—measured in grams—has become a focus for investors. Against the backdrop of gold reaching new highs, small investors’ interest in gold allocation has clearly increased. WTI crude oil rose 1.14% to $56.5 per barrel, with energy commodities overall strengthening.

The cryptocurrency market continues its correction trend. Bitcoin is at $92,540, down 1.18% in 24 hours; Ethereum is at $3,250, up 2.01% in 24 hours. Although Bitcoin faces short-term pressure, the subsequent rebound remains expected, driven by the US stock market’s rally. In Hong Kong stocks, the Hang Seng Index night session futures closed at 25,843 points, 152 points higher than the previous close.

The sharp adjustment in the bond market signals a new change in the interest rate environment. The Bank of Japan’s rate hike pushed the 10-year government bond yield above 2%, reaching a new high since 1999, indicating the official end of Japan’s era of monetary easing. The US 10-year benchmark Treasury yield rose 3 basis points to 4.15%, and the 2-year yield increased 3.2 basis points to 3.492%. France’s 30-year government bond yield rose to 4.525%, a high not seen since 2009, due to the breakdown of the 2026 budget negotiations. The US dollar index increased by 0.3% to 98.7.

Federal Reserve officials maintain a cautious stance on future policy directions. New York Fed President Williams stated there is no urgency to further adjust interest rates at present, noting that past rate cuts have left policy in a good position. Cleveland Fed President Mester is more hawkish, advocating that there is no need to adjust the interest rate range until at least spring, as she is more concerned about rising inflation risks than a fragile labor market. The latest forecasts show that Fed officials only expect one rate cut next year, sharply contrasting with market expectations of multiple cuts.

US consumer confidence has slightly improved month-over-month but remains subdued. The University of Michigan’s December final consumer sentiment index rose to 52.9, below the expected 53.5. The current conditions index fell to a historic low of 50.4, and consumers’ views on purchasing big-ticket items worsened to the lowest level on record, reflecting deep concerns among US households about economic prospects.

Major adjustments are occurring in global technology and policy spheres. US House Foreign Affairs Committee Chairman Mast proposed the Artificial Intelligence Regulation Act, requiring notification to Congress when selling processors with performance equal to or higher than Nvidia’s H200 to hostile countries. Meanwhile, Trump signed a space directive confirming that astronauts will return to the Moon before 2028, and a lunar outpost will be established by 2030, temporarily shelving Mars missions—signaling an escalation in the US-China space race.

ByteDance, TikTok’s parent company, is expected to reach a record high profit of $50 billion in 2025, surpassing the $40 billion accumulated in the first three quarters of this year. If achieved, its profit will be close to Meta’s projected $60 billion this year. ByteDance has signed binding agreements to spin off TikTok’s US operations and establish a joint venture controlled by US investors such as Oracle.

European stock markets rose across the board, with the UK FTSE 100 up 0.61%, Germany’s DAX 30 up 0.37%, and France’s CAC 40 up a slight 0.01%. China’s Golden Dragon Index rebounded by 0.86%.

The core logic of the market this week is shifting: Japan’s central bank raising rates, the US Federal Reserve pausing rate cuts, and the global liquidity environment transitioning from easing to neutral. This will pose new challenges for risk assets that have long relied on loose monetary conditions. The investment value of gold measured in grams per unit becomes more prominent in this context—its record highs are not accidental, as gold remains a traditional hedge against inflation and risk. Investors need to reconsider asset allocation strategies amid policy shifts, rate adjustments, and subdued consumer confidence.