Gold prices rose above 5,000 dollars per ounce again as buyers returned on dips, recouping part of the sharp selloff seen in late January. Continued gold purchases by the People’s Bank of China for a fifteenth consecutive month and strong demand from central banks have been cited as key supportive factors for the market. Despite recent intense volatility, major banks such as Goldman Sachs and Deutsche Bank remain optimistic about gold’s long term bullish outlook due to policy uncertainty and diversification away from US assets, while silver also experienced a sharp rally.

U.S. Federal Reserve Vice Chair Philip Jefferson expressed “cautious optimism” about the outlook for the U.S. economy and stated that strong productivity growth could help return inflation to the central bank’s 2 percent target. He predicted that the disinflationary trend would resume later this year, after the full impact of increased tariffs is reflected in prices. Jefferson also emphasized that the Federal Reserve’s current monetary policy stance is well positioned to respond to economic developments.

Japan’s stock market saw an exceptional rally following the decisive election victory of Sanae Takaichi. The Nikkei 225 rose by about 5.7 percent to a new all time high, while the Topix index also climbed to a fresh peak. Markets expect the new government to pursue expansionary fiscal policies and higher public spending in areas such as artificial intelligence, semiconductors, defense industries, and machinery. Shares of companies linked to these sectors, especially chip equipment makers and defense firms, recorded the strongest gains.

Real wages of Japanese workers declined in every month of 2025, highlighting persistent inflationary pressure. In December, real wages fell by 0.1 percent, while nominal wages rose by 2.4 percent. The decline in household purchasing power has fueled public dissatisfaction and strengthened support for the expansionary fiscal policies of the Takaichi government. Economists expect real wages to improve in the coming months as inflation, particularly food prices, begins to ease.