Gold prices inched higher at the beginning of the week as delays in reopening the Strait of Hormuz weighed on market sentiment. According to FX Street, Iran's demands to the US have complicated the reopening process, contributing to cautious trading in precious metals.
Despite the upward movement, gains in gold were capped by modest strength in the US dollar, which tempered the metal's appeal as a safe haven. Traders remained cautious ahead of upcoming US inflation data, which is expected to influence risk appetite and currency movements.
For Japanese investors, the interplay between geopolitical tensions in the Middle East and US economic indicators highlights the importance of monitoring global developments that can impact safe-haven assets like gold and affect FX and equity markets in Japan.