investingLive AsiaPacific FX news wrap: Gold rocketed to near $5600, dipped back, up again

• Reports that Trump and Schumer are approaching a possible deal to avert shut down
• Xi and Starmer signal thaw as China and UK seek steadier bilateral ties
• China property shares jump on report of easing “three red lines” rules
• Goldman Sachs and Deutsche Bank forecast Reserve Bank of Australia on hold next week
• Reuters poll: RBI seen holding rates at 5.25% as focus shifts to liquidity and rupee
• MUFG, CBA see February RBA rate hike as inflation lifts and AUD finds support
• Banks lift gold forecasts as $6,000/oz targets emerge after record rally
• PBOC sets USD/ CNY mid-point today at 6.9771 (vs. estimate at 6.9521)
• ICYMI – Tesla to end Model S and X production as Musk shifts focus to robots and autonomy
• Australia’s Q4 trade prices lift terms of trade as export prices rebound
• NZ business confidence eases from record highs as activity holds firm, inflation lifts
• Singapore MAS hold policy steady, maintains S$NEER appreciation as inflation outlook lifts
• Gold new record high above $5400 … wait … above $5500 … $5550
• ING sees February RBA rate hike after CPI upside surprise keeps inflation above target
• UBS reiterates 7,700 S&P 500 target, says Fed easing to stay equity tailwind
• German Chancellor Merz warns weak dollar is hurting exporters, backs push for digital euro
• New Zealand December 2025 trade balance +52mn NZD (vs. +30mn NZD expected)
• Tesla Q4 2025: adjusted EPS beats, margins jump; revenue misses, free cash flow fall short
• Microsoft Q2 FY2026 beats estimates; Intelligent Cloud tops views as Azure grows 38% ex-FX
• Meta Q4 2025 Earnings Beat on Ads, Reality Labs Loss Widens; Capex Outlook Raised
• investingLive Americas market news wrap: Fed and BOC holds rates with minimal drama

At a glance:

• Gold exploded to fresh record highs, surging above $5,580 before violent two-way volatility set in.

• AUD and NZD hit multi-year highs, driven by RBA hike chatter and supportive China property news.

• USD weakened broadly, with EUR, GBP, JPY, CHF and CAD all firmer on the session.

• Singapore policy was unchanged, with MAS maintaining its S$NEER settings.

• Equities diverged sharply, with Indonesia plunging into correction territory while China property stocks surged.

Gold delivered one of its most dramatic sessions in years, surging sharply in early Asia trade to a fresh record above $5,400, before accelerating further to trade north of $5,580. The rally peaked around $5,588 in morning trade before violent volatility set in, with prices plunging back toward $5,450 before rebounding again above $5,540 as this update was written.

Geopolitical uncertainty continues to underpin structural demand for gold, but the sheer scale and speed of the early-session surge suggests additional dynamics at play. With prices jumping more than $200 in a matter of hours, the risk of forced positioning adjustments appears elevated, and it would not be surprising if reports of fund or manager stress (blow ups) emerge in coming days.

In FX markets, the Australian dollar pushed to a fresh three-year high as speculation around a potential RBA rate hike intensified. The New Zealand dollar also climbed to a seven-month peak. Both currencies found further support later in the session following news of regulatory easing in China’s property sector, which lifted broader China-linked risk sentiment.

The US dollar weakened across the board, with EUR, GBP, JPY, CHF and CAD all advancing against the greenback.

In Asia policy news, the Monetary Authority of Singapore kept monetary settings unchanged, maintaining the prevailing rate of appreciation and configuration of the S$NEER policy band.

In corporate headlines, Tesla said it will phase out production of its Model S and X vehicles next quarter and retool its Fremont plant for humanoid robot manufacturing, marking a strategic shift toward robotaxis and AI.

Equity markets diverged sharply. Goldman Sachs downgraded Indonesian equities to underweight, warning of potential forced outflows exceeding $13bn if index status changes. Indonesian stocks plunged for a second straight day, with the benchmark index falling over 10% and entering correction territory amid panic selling.

By contrast, Chinese property shares surged after reports developers no longer need to submit “three red lines” leverage metrics. Sunac jumped 25%, lifting sector sentiment and adding further support to the AUD.

Asia-Pac
stocks:

• Japan
  (Nikkei 225) +0.22%
• Hong
  Kong (Hang Seng) +0.54%
• Shanghai
  Composite -0.1%
• Australia
  (S&P/ASX 200) -0.32%