Gold prices edged down by 0.44% on Tuesday, unable to break above the $4,200 level amid growing concerns over rising US consumer inflation expectations and escalating geopolitical tensions in the Middle East, according to FX Street.
The precious metal's retreat reflects investor caution as inflation worries persist in the US, coupled with the threat of hostilities in a key geopolitical region. These factors have constrained gold's appeal as a safe haven despite its traditional role during uncertain times.
For Japanese investors, the decline in gold prices comes as the yen remains sensitive to global risk sentiment, influencing demand in both FX and precious metals markets domestically.