- US MarketsÂ
US equities are flat in the early Asian trading session today, after closing at a record high level of $6,977 yesterday, as the index was supported by broadening market leadership. SPX continues to trade with a constructive tone as investors remain focused on earnings, liquidity, and a supportive macro backdrop, while largely looking through political and policy-related noise.
Headlines surrounding Jerome Powell and the Federal Reserve have introduced brief volatility for the index, but price action suggests underlying confidence remains intact. For several months, small-cap stocks, the Dow, and equal-weighted indices have been gaining investors’ interest, indicating a healthy market and strong internal dynamics instead of late-cycle excess. Also, the recent labour market data continues to reinforce the soft-landing narrative, keeping growth expectations stable and financial conditions accommodative. Sentiment in parts of the financial sector was negative, including banking stocks, after the US president proposed a 10% cap on credit card interest rates for 1 year. However, this appears contained and has not meaningfully disrupted broader equity momentum. The focus is now shifting to earnings season, with JPMorgan Chase expected to release its fourth-quarter results on Tuesday before the market opens. This will set the tone for the financial sector, followed by reports from Bank of America, Citigroup and Morgan Stanley in the coming days. Investors will closely watch commentary on credit quality, margins and capital markets activity.
Volatility remains subdued, and from an  options positioning standpoint, dealer gamma is supportive in the $6,900 – $7,000 range, and dips continue to attract buyers. Support levels are seen at yesterday’s low at $6,934, followed by last week’s low at $6,890. On the upside, resistance is seen at the all-time high  level of $6,986, followed by the psychological $7,000 level. Overall, momentum, structure and positioning point to continued upside, with dips likely to be viewed as buying opportunities rather than the start of a deeper correction.
- Gold and SilverÂ
Gold is holding steady near record highs, trading just below $4,600 per ounce after reaching a new peak of $4,630 on Monday. This rise is due to several factors, including concerns about the Federal Reserve’s independence, growing geopolitical risks, and ongoing expectations of an easier US monetary policy.
Demand for gold has grown as Federal Reserve Chair Jerome Powell faces pressure, including reported legal threats related to congressional testimony. A weaker US dollar also supports non yielding assets like bullion. Rising tensions in Iran, ongoing US actions in Venezuela, and global instability have made gold even more attractive as a safe-haven investment.
The overall outlook for gold remains bullish as traders await US CPI data for guidance. Any pullback in gold prices is likely to attract buyers since ongoing political, monetary, and geopolitical risks continue to support the metal.
Technically, gold may face resistance around $4,660 on the ascending trendline formed by joining the highs of Oct 27, Nov 13, and Dec 26, 2025. Support lies around $4,550, a previously tested level. Silver is trading up 0.4%, just below its all-time high of $86.24. The metal may face resistance around $87, while support may be seen around $82.50 levels.
- Crude OilÂ
Oil prices are trading steadily with WTI around $59.80 on Tuesday after closing higher yesterday.
Oil prices find support amid ongoing tensions between the U.S. and Iran, as U.S. President Donald Trump said on Monday that any country that does business with Iran will face a 25% tariff on its trade with the U.S. This action followed President Trump’s threat to Iran for repercussions if they target civilians during protests in Tehran. Traders await the release of the API crude stockpiles report today. A lower-than-expected inventory buildup or a drawdown could boost the WTI price. The upside, however, would be capped by prospects for more crude supply from Venezuela.
Technically, WTI’s short-term rebound is likely to continue as it trades within a well-defined ascending channel with price holding above the 5- and 20-day SMAs at $57.90 and $57.41. It is moderately above the 50-day SMA at $58.59. The 100-day SMA at $60.34 remains a key resistance level. RSI in the high-50s to low-60s reflects improving but not strong momentum. Brent has immediate support at $63.20, and resistance is at the 100-day SMA level of $64.20.
- U.S. Dollar Index (DXY)Â
The DXY index is up modestly 0.13% in today’s session, holding around 99 as investors await the latest consumer inflation report due later today. This will give traders cues on the Fed’s monetary policy path going forward. Markets are pricing in two Fed rate cuts this year starting in June, although any upside surprise in inflation could limit the room to ease. CPI swaps are pricing a December headline print of 2.77% YoY. Looking forward, January seasonality also poses upside risks that could challenge dovish positioning.
The 10 year yield continues to struggle to sustain a move above 4.20%, with recent auctions suggesting steady underlying demand despite heavy supply. Inflation surprises or any further credibility concerns around the Fed could steepen the curve, but for now expectations appear anchored.
In FX, the yen was a standout mover. The yen slid to its weakest level today since July 2024 at 158.925 per dollar. That followed news from Kyodo that Japanese Prime Minister Sanae Takaichi had conveyed to a ruling party executive her intention to dissolve parliament’s lower house at the outset of its regular session scheduled to start on 23rd January. The yen sank to record lows against the Euro and the Swiss franc, while also hitting its weakest level against the British pound since August 2008.
On the technical side, the DXY faces resistance from the 50-day SMA at 99.05. Support lies at 98.76, a level that has previously acted as support. If the index sees a break below, next support lies at 100-day SMA of 98.63. On the EURUSD front, the pair closed at its 100-day SMA yesterday, but is trading 0.05% below it. If the pair breaks above the 100 day SMA at 1.1656, next resistance lies at 1.1689 from the descending trendline connecting highs of 2nd Jan, 6th Jan and 12th Jan. Support lies around the level of 1.1616-1.1618, which has previously acted as a base for the pair.
