ForexLive Asia-Pacific FX news wrap: Gold hits another all-time record high, above US$3007

The
major story of the session was the collapse
of the Israel-Hamas ceasefire,
with the office of Israeli Prime Minister Benjamin
Netanyahu
confirming that “extensive strikes” had been launched on
Gaza following Hamas’ continued refusal to release hostages and
rejection of mediator proposals.

Adding to the geopolitical risk,
reports surfaced that U.S.
forces had sunk an Iranian intelligence-gathering vessel,
though as of posting, these remain unconfirmed. I suspect that given the time that has passed, these reports are incorrect.

Oil saw a modest lift during the
session, while gold
surged to yet another record high, briefly trading above US$3,007,
as escalating tensions fueled demand for safe-haven assets.

In FX, major currencies
responded in a muted
fashion. A broad bid
for the USD weighed
on EUR, AUD, NZD, CAD, and GBP. USD/JPY
and USD/CHF remained firm,
indicating no significant flight to traditional safe-haven
currencies. USD/JPY climbed (just) back
above 149.50,
reflecting ongoing yen weakness.

Japan’s Finance
Minister Katsunobu Kato
addressed the jump in JGB
yields, reiterating
that bond markets will be left to determine pricing but warning that
intervention remains an option if needed. His comments echoed BOJ
Governor Kazuo Ueda’s
previous messaging.

As a side note, the Bank
of Japan meets Tuesday and Wednesday (Japan time),
with markets overwhelmingly expecting no
policy change,
given mounting risks from the ongoing global
tariff trade war.

On the central bank
front, Reserve Bank
of Australia Assistant
Governor Sarah Hunter,
speaking in Sydney, underscored that the RBA
will be cautious—slower than market pricing suggests—when it
comes to rate cuts.
She also emphasized that the focus
remains on U.S. policy settings and their impact on Australian
inflation.

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ForexLive Asia-Pacific FX news wrap: Gold hits another all-time record high, above US$3007

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