Gold prices fell on Monday, trading around $4,050 per ounce, down 0.96% amid reduced safe-haven demand following de-escalation in US-Iran tensions, according to FX Street. The easing geopolitical risks diminished gold's appeal as a protective asset.
Meanwhile, the US Dollar index remained near its year-to-date highs, supported by a hawkish update from the Federal Reserve. MUFG’s Lee Hardman noted that the US Dollar posted its second consecutive week of gains as markets priced in expectations of further monetary tightening.
For Japanese investors, these movements highlight the ongoing influence of global geopolitical events and central bank policies on FX and commodity markets, underscoring the importance of monitoring US monetary signals amid yen volatility.