Asian stock markets fell broadly, with Japanese stocks leading the decline at 2%. Spot gold has risen for five consecutive days, and silver surged to a 13-year high

On Monday, September 1st, the precious metals market performed brilliantly, with silver reaching its highest level since 2011, and gold prices rising for the fifth consecutive day to around $3,478 per ounce. Investors expect the Federal Reserve to cut interest rates soon, driving funds toward safe-haven assets.

The MSCI Asia-Pacific Index fell 0.1%, while the Nikkei 225 Index dropped 2% due to losses in chip stocks, with major chip manufacturers like Samsung Electronics and SK Hynix experiencing significant declines. U.S. stock index futures edged lower, while European stock index futures saw slight gains. The U.S. market will be closed on Monday due to the Labor Day holiday. Last Friday, a U.S. federal appeals court ruled that the broad trade tariffs imposed by President Trump were illegal, adding new uncertainties to the market.

• The Nikkei 225 Index's decline widened to 2%.
• The Euro Stoxx 50 Index futures rose 0.1%.
• The U.S. Dollar Spot Index remained largely unchanged, while the Euro rose 0.2% to $1.1709.
• The Taiwan Stock Exchange Weighted Index closed down 0.7% at 24,071.73 points.
• The yield on Japan's 10-year government bonds rose two basis points to 1.620%.
• The yield on India's 10-year government bonds increased by five basis points to 6.62%.
• West Texas Intermediate crude oil fell 0.4% to $63.74 per barrel.
• London copper futures rose 0.43% to $9,949.
• Spot gold broke through $3,478 per ounce, reaching a new high since April 22.
• Spot silver rose over 2%, currently at $40.53 per ounce, a new high since 2011.
• Bitcoin fell 1.6% to $107,417.89.

Precious Metal Prices Hit Multi-Year Highs

On Monday, silver prices broke above $40 per ounce, reaching their highest level since 2011, with an increase of over 40% year-to-date. Silver benefits from its industrial properties, and according to the Silver Institute, the silver market is heading toward a fifth consecutive year of supply shortages driven by clean energy technologies such as solar panels.

Gold prices rose 1.1% during the day to $3,478, approaching the historical record of $3,500 set in April.

Meanwhile, the price of industrial metal copper also showed strength. After rising 3% last month, copper prices on the London Metal Exchange (LME) continued to climb toward the key threshold of $10,000 per ton on Monday.

The weakening of the US dollar makes dollar-denominated commodities more attractive to overseas buyers. Despite predictions that President Trump may impose import tariffs on copper, copper prices remain resilient. Goldman Sachs analysts noted in a report that China's apparent consumption grew by about 10% in the first half of the year, supporting copper demand, but a more moderate outlook is expected for the second half.

Investor expectations for a rate cut by the Federal Reserve this month are heating up, providing support for precious metals. Trump's repeated attacks on the Fed have also heightened market concerns about central bank independence, driving funds into safe-haven assets. Silver also benefits from its industrial use in solar panels and clean energy technologies, with the Silver Institute expecting a supply deficit for the fifth consecutive year.

Chip Stocks Plunge Weighing on Asian Markets

On Monday, shares of Samsung Electronics and SK Hynix fell sharply, becoming major factors dragging down the Nikkei 225 index. The Nikkei 225 index's decline widened to 2%.

Meanwhile, the US market ended its tech stock rally since April last Friday due to declines in Nvidia and weak guidance from Marvell Technology. US stock index futures rose early on Monday but then turned down 0.1%, while European futures edged up 0.1%.

Key September: Market Faces Test in Historically Weak Month

As investors return from summer vacations, the market is entering a critical period. In the next 14 trading days, the US employment report, key inflation data, and the Fed's interest rate decision will be released, setting the tone for the market for the remainder of the year. The S&P 500 index is entering September—historically its worst-performing month, keeping investors on alert.

However, not everyone believes history will simply repeat itself. Chris Weston, head of research at Pepperstone Group, wrote in a report:

"Few fund managers would clear core positions solely based on seasonal factors. The macro environment has not changed meaningfully, so we are unlikely to see a fundamental shift in conditions simply because we are entering September."

New signals are also emerging from the policy front. San Francisco Fed President Mary Daly hinted that policymakers may soon be ready to lower interest rates. This statement, combined with a court ruling declaring some of Trump's tariffs illegal, creates a complex policy backdrop.

Geopolitical Risks: Southeast Asia Situation Draws Attention

In addition to macroeconomic factors, political risks in Southeast Asia have also returned to investors' focus. Reports indicate that Indonesian President Prabowo Subianto has sparked deadly riots due to domestic living costs and inequality issues, leading to the largest drop in the country's stock market in nearly five months. In Thailand, after Prime Minister Paetongtarn Shinawatra was disqualified, various parties are still vying to form the next government. These regional political upheavals are becoming significant risk factors affecting the performance of individual markets