Gold prices rose by almost 1% on Thursday, recovering despite persistent inflation concerns highlighted by strong Core PCE data. According to FX Street, the US Dollar weakened against major currencies, supporting gold's appeal as a safe haven amid expectations of a prolonged period of higher interest rates.
Meanwhile, the USD/JPY pair traded close to the critical intervention threshold at 161.80, maintaining levels near multi-decade highs. FX Street noted that this movement reflects widening yield differentials between US and Japanese government bonds, which continue to influence the exchange rate dynamics.
For Japanese investors and traders, the tension in USD/JPY remains a key focus, as any official intervention could impact market liquidity and strategy amid ongoing monetary policy divergence between the Federal Reserve and the Bank of Japan.