Gold Breaks Record, Yen Strengthens! Markets Uneasy
Gold prices surpassed $5,000 per ounce on Monday as investors sought safe havens. A weakening US dollar and geopolitical tensions, including the Greenland issue and sanctions on Iran, boosted demand for gold. Silver and other precious metals also rose as investors sought refuge from market volatility.
The Japanese yen (JPY) continued to strengthen against the dollar, reaching 153.99 per dollar after a surge on Friday. Speculation about joint US-Japan intervention made traders cautious about short selling the yen. Japanese Prime Minister Sanae Takaichi asserted that the government would crack down on excessive speculation, raising the possibility of market intervention.
Japan's Nikkei Index fell nearly 2%, while S&P 500 and European futures also weakened. Investors await the Federal Reserve meeting later this week, while remaining wary of US sanctions on Iran and other geopolitical tensions.
The US dollar index fell to a four-month low, reinforcing the strengthening trend in the yen and precious metals. Analysts say the weakening dollar provides an opportunity for Japan to mitigate the yen's decline, while the bond market remains sensitive to fiscal policy and local political moves.
Oil prices stabilized after previously surging due to concerns about US sanctions on Iran. Brent crude was at $65.91 per barrel, while WTI was at $61.1 per barrel, indicating that the energy market is still affected by global geopolitical tensions. (az)
Source: Newsmaker.id
