Asian stocks were mixed on Monday while the US dollar hovered near its lowest in almost three months on expectations of the Federal Reserve cutting interest rates next year, which have also sparked a fierce rally in precious metals.

In Hong Kong, the benchmark Hang Seng Index was up 109 points, or 0.43 percent, in opening trades at 25,928.

On the mainland, the benchmark Shanghai Composite Index crept up just under one point, or 0.02 percent, to 3,964 while the Shenzhen Component Index was flat, up 0.41 points, at 13,604 and the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was down 0.19 percent at 3,237.

Silver climbed above the US$80-per-ounce-mark for the first time before sliding sharply lower in volatile trading on Monday, while platinum and palladium also fell sharply after hitting all-time highs. Gold eased nearly 1 percent but has repeatedly breached record highs this year on dollar weakness, safe-haven demand and rate-cut wagers.

Charu Chanana, chief investment strategist at Saxo, said precious metals have been lifted this year by a powerful mix of rate-cut tailwinds and hedging against geopolitical and fiscal uncertainty.

"Add supply worries and the move has turned parabolic. But the late-year, near-vertical surge, especially in silver, also raises the risk of higher volatility. Near-term, the ‍risk is technical and positioning-led," she said.

"The big picture, however, for precious metals still looks structurally supportive with easier rates ahead, fiscal and geopolitical ⁠unease, and ongoing diversification demand. That means any pullbacks may be seen as opportunities for long-term investors to rebuild exposure."

Geopolitics was back on investors' ‍minds after US President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelenskiy were "getting a lot closer, maybe very close" to an agreement to end the war in Ukraine.

In stocks, MSCI's broadest index of Asia-Pacific shares was 0.27 percent higher, hitting its highest since October 3 in a strong start to the last week of the year. The index has risen over 25 percent this year, boosted by technology stocks as AI mania firmly took ‌hold of investors.

South Korea's Kospi rose 1.5 percent to a near two-month peak, taking its yearly gains to an eye-popping 74 percent, on pace for its strongest annual gain since 1999. Japan's Nikkei slipped 0.4 percent.

Investor focus on the holiday-curtailed week will be on minutes ‌of the Fed's last meeting due on Tuesday. The US central ‌bank has cut ‌rates this month and projected just one more cut for next year while traders have priced in at least two more.

Tony Sycamore, market analyst at IG, said markets will scour the minutes for deeper insights into the committee debates on the balance of risks and the timing of future easing.

The spotlight will then switch over to labour market ⁠data expected in the new year including non-farm payrolls, Sycamore said.

"If these reports show unambiguous labour market weakness, it will increase the likelihood that the Fed cuts rates by 25 basis points at its January FOMC meeting," he said, referring to the Fed's policy-setting Federal Open Market Committee. (Reuters/Xinhua)