Group 1 - The precious metals sector experienced a widespread sell-off on February 2, with significant declines in key futures contracts [1] - Main contracts for silver and platinum-palladium hit their daily limit down, with declines of 17% and 16%, respectively, closing at 24,832.00 yuan/kg for silver, 552.15 yuan/g for platinum, and 413.7 yuan/g for palladium [1] - Gold futures also saw a drop of over 11% in the main contract [1] Group 2 - Guosen Futures indicated that the performance of precious metals is closely tied to macroeconomic sentiment in the gold and silver sectors [1] - The nomination of Powell has shaken the narrative of monetary easing, while the CME's tightening of margin requirements has exacerbated liquidity constraints [1] - The outlook for platinum and palladium may remain weak and volatile, suggesting a cautious approach of "watching more and acting less" [1]

Core Viewpoint - The article discusses the recent performance of gold and silver in the market, highlighting a significant increase in prices and the implications of Japan's fiscal policy on the global economy [2][5]. Group 1: Precious Metals Market - SHFE gold rose by 1.07% on December 26, with London spot gold surpassing $4500 per ounce [2][5]. - London spot silver opened higher, breaking through $73 per ounce, reaching a new high [2][5]. - The precious metals market is experiencing renewed enthusiasm, with gold and silver showing strong performance despite increased short-term volatility [2][5]. Group 2: Japan's Fiscal Policy - Japan's initial budget for the fiscal year 2026 is set at 122.3 trillion yen, a 6.3% increase from the 115.2 trillion yen budget of 2025, marking the largest budget in history [2][5]. - The budget increase significantly exceeds the current inflation rate of approximately 2%, driven primarily by rigid expenditures such as social security, defense, and debt costs [2][5]. - Japan is currently implementing a "loose fiscal + tight monetary" policy combination, which aims to support the economy and livelihoods while controlling inflation, resulting in a complex policy effect [2][5]. Group 3: Geopolitical Context - The President of Ukraine has indicated discussions to expedite the timeline for achieving "real peace," which may influence global economic conditions [2][5].