Gold prices inched higher on Monday following encouraging progress in US-Iran negotiations, which are being mediated by Pakistan and Qatar, FX Street reported. This development offered some support to the safe-haven metal as traders responded to the diplomatic breakthrough.
Meanwhile, the US Dollar strengthened against major currencies, with USD/JPY advancing approximately 0.25% to approach 161.70 yen. This rise was driven by ongoing geopolitical tensions and persistent expectations of further Federal Reserve interest rate hikes, according to FX Street. Euro weakness was also noted, with ING’s Francesco Pesole highlighting a risk that EUR/USD could test the 1.140 level before any sustained recovery.
For Japanese investors, the USD/JPY movement remains particularly relevant as it influences import costs and export competitiveness amid a complex global economic environment.