- US MarketsÂ
US markets remain resilient, with the SPX trading near all-time highs at $6,950 in the early Asian session today. Yesterday, the index was marginally down by 0.2% amid pressure on financials.
CPI data yesterday was in line with expectations, yet it showed inflation remains a mixed story. Food prices rose at the fastest pace since August 2022. This keeps some pressure on the inflation narrative. Core goods inflation looked soft in December, but that was largely due to a sharp fall in used car prices. Strip that out, and price pressures haven’t fully gone away. Apparel prices barely cooled, and furnishings actually moved higher. Today’s focus turns to PPI data, which will be closely watched after the CPI print. If producer prices come in benign, it should reinforce the view that inflation is easing gradually. A surprise to the upside, however, could trigger a short-term volatility spike, especially with positioning still fairly relaxed. Financials remain the weak spot. JPMorgan Chase fell more than 4% despite solid earnings, as investors focused on weaker trading revenues and the risk to margins. The bigger overhang is President Donald Trump’s proposal to impose a one-year 10% cap on credit card interest rates. That policy risk has weighed heavily on banks and card networks, with Visa and Mastercard also selling off sharply. At the same time, markets are watching the Supreme Court of the United States, where upcoming rulings on trade and tariff-related matters could act as a volatility trigger. Any surprise outcome could briefly unsettle risk assets, even if the broader trend remains intact. Despite all this, the S&P 500 and Nasdaq Composite remain close to record highs. Outside financials, earnings expectations are steady and liquidity conditions remain supportive.
Technically, SPX is holding firm. Support levels are seen at yesterday’s low at $6,938, 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. Financials are under pressure, and near-term volatility is possible around PPI and the Supreme Court ruling, but unless inflation reaccelerates sharply, dips at the index level are still likely to find buyers.
- Gold and SilverÂ
Gold continues to command strong demand, reaching a record high of $4,639/oz today. Currently, it is trading near $4,625/oz (+0.86%) in the Asian session and rebounding toward its record high as a rare convergence of political, monetary, and geopolitical risks strengthens safe-haven flows. Softer-than-expected US inflation data has reinforced expectations for two Fed rate cuts this year, while growing concerns over the Federal Reserve’s independence, following reports of potential legal action against Chair Jerome Powell, have unsettled rate markets and weighed on the US dollar.
Geopolitical tensions remain elevated. Violent protests in Iran, renewed US pressure on Venezuela, fresh tariff threats linked to Tehran, and ongoing conflict in Ukraine have all heightened uncertainty and pushed demand for assets insulated from political outcomes.
Silver has also reached new record highs, driven by limited supply and strong industrial demand. The overall outlook for both gold and silver remains positive. As inflation eases, expectations for rate cuts grow, and geopolitical risks persist, any drop in gold prices will likely be seen as a buying opportunity while the metal stays near its historic highs.
From a technical perspective, gold could face resistance near $4,675, based on the trendline connecting the highs from October 27, November 13, and December 26, 2025. Support is around $4,550, a previously tested level. Silver reached a record high of $91.55 today, which is now its immediate resistance. The next resistance is around $95, and support is near today’s low of $86.91.
- Crude OilÂ
Oil prices continue their upward momentum as WTI rose 2% yesterday, giving a breakout, underpinned by ongoing geopolitical developments. WTI is trading around $60.70 in today’s session.
A key development that might support crude today will come from top U.S. officials’ meeting at the White House to weigh military options against Iran. U.S. President Donald Trump reinforced support for anti-government protests to continue against Tehran as he said that help is on the way. He reportedly delayed further negotiation talks until the violence against protestors ceases by the Iranian administration. Today, traders will closely monitor the EIA crude oil report for further insights on inventory status, with consensus for a 2.2 million barrels draw.
The view for today is cautiously bullish. WTI has extended its sharp rebound with price firmly above the 5-day ($58.71), 20-day ($57.60), and 50-day ($58.60) moving averages, confirming strong near-term upside momentum. A sustained break above $61.43-$62.05 range may pave the path for further upside. Breaking the critical 200-day SMA level at $62.66 will be the next challenge. For Brent, support is likely from the 100-day SMA at $63.80, with possible resistance at $65.14-$65.17 range, coinciding with the 200-day SMA.
- U.S. Dollar Index (DXY)Â
The DXY index is flat in today’s session, down 0.01%. The U.S. dollar may be carving out a near-term floor after recent weakness, as shifts in Federal Reserve rhetoric turn decisively more hawkish.
A Bloomberg Economics index tracking Fed communication shows that the Fed sentiment tracker jumped to levels that was last seen in April 2025, when the FOMC was in a clear pause phase. The move is notable because the current committee is more dovish than it was then, as Stephen Miran replaced Adriana Kugler. Despite this, Fed rhetoric has shifted sharply hawkish, helping lift the U.S. 10-year Treasury yield premium over G7 peers to around 90 bps, from a two-year low near 80 bps in December.
In FX, USD/JPY remains in focus as the pair approaches 160. Roughly $4.5 billion in options expire at that strike on Friday, increasing hedging activity. Markets are bracing for intervention as one-week implied volatility hits 8.09 and hedging costs rise. These pressures are being fueled by talk that PM Sanae Takaichi may call a snap election, raising expectations for fiscal expansion and keeping Japan’s negative real rates in the spotlight. Meanwhile,for the EUR/USD pair, the one-day expiry options data from DTCC points to low volatility expectations, with most trades concentrated around a tight range of 1.1650–1.1750. The activity centered near 1.17 suggests that the market expects the currency pair to stay close to current levels into expiry tomorrow. Call interest is slightly higher than puts, indicating a mild bullish bias, but trade sizes remain small.
Traders will look forward to today’s release of PPI and retail sales and Thursday’s jobless claims for a more complete picture of the US economy. Additionally, the US Supreme Court’s tariff ruling is today as well.
On the technical front, the DXY gained 0.29% in yesterday’s session and currently trades above key moving averages. The index has support from 50-day SMA at 99.04. On the flip side, resistance at 99.40, a level that has previously acted as resistance. On the EURUSD front, the pair is trading at 1.1651, up 0.08%. Resistance lies at 1.1678 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 provided support to the pair.
