Gold prices (XAU/USD) hovered near the $4,100 mark this week, showing a bearish trend and set for a 1.6% decline over the week, according to FX Street. The precious metal is facing downward pressure as rising oil prices and ongoing central bank rate hikes weigh on investor sentiment.
Market participants are closely watching these dynamics, as increases in energy costs and tightening monetary policies typically reduce gold's appeal as a safe-haven asset. The interplay between these factors has contributed to the recent depreciation in gold prices.
For Japanese investors, these movements come amid a backdrop of cautious risk appetite in FX and equities markets, with global monetary tightening continuing to influence asset allocations.