Gold prices continued their downward trajectory in Asia, falling below US$2,300. The decline followed a significant drop on Monday, with no fresh news acting as a catalyst. Data releases were limited, with preliminary PMIs from Australia and Japan providing little market impact. Similarly, news flow was thin.
Japan’s finance minister, Suzuki, made comments indicating that recent discussions in Washington laid the foundation for Japan to take appropriate FX action. However, USD/JPY remained largely unresponsive, trading within a narrow range. Bank of Japan Governor Ueda also spoke, but his remarks did not offer any new insights into the central bank’s considerations for its next policy move.
In currency markets, the US dollar lost some ground against major currencies, including AUD, NZD, EUR, and GBP. However, the gains were modest. Mainland Chinese stocks declined during the session, while Hong Kong stocks edged higher. This divergence may be partly attributed to a Wall Street Journal report that the US is preparing sanctions targeting Chinese banks that have provided assistance to Russia’s war effort in Ukraine.
