Gold prices gained modestly on Monday, rising by 0.50% to around $4,179 per ounce, according to FX Street. This increase coincided with the start of positive diplomatic talks between the US and Iran, which helped to ease geopolitical tensions.
The improved outlook from these talks led to a drop in oil prices, which in turn reduced inflation expectations among investors. Oil’s decline contributed to the softer inflation outlook, supporting gold’s appeal as a safe-haven asset.
For Japanese investors, this development is notable as shifts in global inflation and commodity prices can influence the Bank of Japan’s monetary policy stance and impact FX and equity markets domestically.