Gold prices started the week on a weak note, declining amid rising 5% Treasury yields and anticipation of the Federal Open Market Committee's (FOMC) upcoming monetary policy decision. According to FX Street, gold (XAU/USD) fell about 0.85% on Monday, hitting a one-month low of $4,253 before trading at $4,310 at the time of reporting.
The increase in Treasury yields has increased the opportunity cost of holding non-yielding assets like gold, pressuring prices lower. Market participants are closely watching the FOMC week for clues on the future direction of US interest rates, which remain a key driver for precious metals.
For Japanese investors, the movement in gold prices comes as global monetary policy uncertainties continue to influence asset allocation decisions, particularly in FX and commodities. The interplay between US yields and safe-haven demand remains critical for Japan's export-driven economy and its financial markets.