Gold Rises on Safe-Haven Demand

Gold prices advanced to near $4,630 as traders sought safe-haven assets amid renewed tensions in the Middle East. Market sentiment was influenced by ongoing supply risks, including concerns around the Strait of Hormuz and potential Iran-related supply shocks, which bolstered the precious metal's appeal.

Japanese Intervention Sinks US Dollar

The US Dollar weakened broadly after Japanese authorities reportedly intervened in currency markets to strengthen the Yen, an event dubbed "Yentervention." This action triggered a sharp decline in the US Dollar Index and caused the USD/JPY pair to plunge, while simultaneously boosting other currencies like the Australian Dollar, British Pound, and Euro.

Central Banks Hold Rates but Stay Hawkish

The Bank of England and the European Central Bank both held their respective interest rates steady as expected. The Bank of England's decision was viewed as an "active hold," signaling a hawkish stance amid re-emerging inflation risks, while other global central banks, like the Bank of Thailand, are also pausing policy changes due to building stagflationary pressures.

Mixed Economic Outlook Across Asia

Economic reports from Asia presented a varied landscape, with Taiwan showing strong GDP growth driven by exports and robust industrial profits supporting China's manufacturing outlook despite softening domestic demand. Elsewhere, India’s growth was described as resilient, while Japan's core consumer price inflation edged higher.