Gold prices (XAU/USD) fell to around $4,000 during early Asian trading hours on Monday, as escalating tensions between the US and Iran heightened expectations for further Federal Reserve interest rate hikes, according to FX Street.
The precious metal suffered a significant decline in the second quarter, losing 14%, marking its worst quarterly performance since 2013, FX Street reported. Market participants are increasingly pricing in more aggressive monetary tightening by the Fed, which has weighed on gold’s appeal as a safe haven asset.
For Japanese investors, these developments come amid ongoing volatility in FX markets, underscoring the need to monitor geopolitical risks closely as they influence both currency and commodity movements.