June delivered positive returns for both precious metals and semiconductor equities, as investors balanced improving macro signals against lingering geopolitical risks. Gold climbed 3.2% and silver advanced 6.8% for the month, supported by a softer U.S. dollar and renewed ETF inflows from Asian investors.
In semiconductor markets, the AI-driven rally broadened beyond Nvidia and TSMC into memory, equipment and select backend plays. The Philadelphia Semiconductor Index gained 8.5%, with SK Hynix and Tokyo Electron among the top performers. Memory pricing stabilized and foundry utilization improved, suggesting the industry is exiting the trough.
Macro data released during the month painted a mixed picture. U.S. core inflation continued to moderate, while non-farm payrolls surprised to the downside, reinforcing the case for rate cuts later this year. The European Central Bank delivered its first rate cut, joining Canada and Switzerland in an easing cycle that is expected to broaden.
Looking at regional flows, North Asian equity funds saw net inflows for a third consecutive week, while Southeast Asia remained underweight among global emerging-market managers. India continued to attract long-term capital despite elevated valuations in the consumer and IT services sectors.
MetalSemi Asia's outlook for July remains cautiously constructive. We favor gold on dips for portfolio hedging, and we see select semiconductor leaders with AI exposure as core holdings. Risks include a hawkish Fed pivot, renewed China-U.S. trade tensions and any slowdown in AI capital spending.
