Gold continued its upward trend, reaching just under US$2,900 as Shanghai Exchange raised its margin ratio and increased the limit on price fluctuation to 8% from 7%. This led to a top in gold on the session, signaling further potential gains. Meanwhile, Japan’s Finance Minister Suzuki made comments hinting at possible discussions on foreign exchange at the upcoming G20 meeting, causing some volatility in the USD/JPY pair.
Despite the movements in gold and the yen, other major currencies traded in tight ranges, with even USD/CNH showing minimal fluctuations. Regional central banks such as the Bank of Korea and the Monetary Authority of Singapore opted to keep their policies unchanged, contributing to the overall stability in the FX market. As traders kept a close eye on these developments, gold prices remained a focal point due to the ongoing trend of upward movement.
Overall, the day saw mixed reactions in the market, with gold shining as a standout performer while other major currencies remained relatively stable. The potential for discussions on foreign exchange at the G20 meeting added an element of uncertainty, impacting the USD/JPY pair. With central banks in the region maintaining their current policies, the focus shifted towards gold’s continued uptrend and the implications it could have on the broader market trends.