Gold prices edged lower to around $3,985 ahead of the US PCE Inflation data release, holding near a more than seven-month low of $3,983 touched on Wednesday, according to FX Street. The precious metal’s decline reflects cautious sentiment as markets await key inflation figures that could influence Federal Reserve policy.
Meanwhile, the USD/JPY pair climbed to a fresh all-time high near 162.00 yen during the European trading session on Thursday, driven by a firm US Dollar. This surge underscores ongoing strength in the dollar, impacting currency markets globally.
Latin American currencies also weakened amid the dollar’s rebound, with USD/MXN and USD/BRL breaking above significant resistance levels at 17.50 and 5.20 respectively, noted Societe Generale’s Kenneth Broux via FX Street. For Japanese investors, these moves highlight the continued volatility in FX markets influenced by US monetary policy and inflation data.