Gold prices edged lower to around $4,210 during the early Asian session on Friday, reacting to the latest signals from the US Federal Reserve. According to FX Street, the precious metal lost ground following the central bank's June policy meeting.
At this meeting, the Federal Reserve decided to keep interest rates unchanged but indicated that rate increases could be on the horizon later this year. This outlook weighed on gold, which often moves inversely to rate hike expectations, as reported by FX Street.
For Japanese investors, the Fed's stance remains a key factor influencing both gold and FX markets, given the sensitivity of the yen and commodity prices to US monetary policy shifts.