Gold dropped on Monday, remaining under pressure as continuous U.S.–Iran missile strikes drove crude prices upward, intensifying expectations of aggressive Federal Reserve interest rate hikes to contain inflation. The latest escalation followed a fourth round of American strikes, shifting market attention to upcoming inflation figures and crucial congressional testimony from the Fed Chairman.
The USD/JPY pair consolidated within a narrow range ahead of upcoming U.S. inflation metrics, retreating slightly from its recent multi-decade peaks while preserving an overarching bullish trajectory. Although domestic asset buying emerged after Japan's Finance Minister urged pension funds to home in on local investments, elevated crude oil prices driven by international tensions continue to strain the import-dependent yen.
Bitcoin established short-term upward momentum, recovering from recent lows to reclaim its 100-day moving average. Prevailing uncertainty regarding the July Federal Reserve meeting continues to restrain aggressive purchasing, while prior spot ETF outflows were successfully neutralized by long-term investor accumulation. However, capital rotation into technology and AI sectors has reduced cryptocurrency liquidity, delaying attempts to revisit previous spring peaks.
Brent crude prices jumped over 3% on Monday, reversing a two-day decline as escalating U.S.–Iran missile friction directly threatened critical shipping lines. The latest hostilities followed a fourth round of American strikes, dismantling prior peace-deal optimism and dimming diplomatic expectations as Iran demands firm U.S. commitments before returning to negotiations.
The tech-heavy Nasdaq-100 index stabilized near record peaks following a two-day recovery, maintaining a strong year-to-date advance as market participants await upcoming CPI data for monetary policy insights. While passive investment inflows continue to be driven by new index inclusions, capital is actively rotating away from top semiconductor leaders into defensive equities and secondary artificial intelligence hardware providers.
The USD/CNY pair extended its steady downward correction, approaching critical support thresholds as the PBOC actively adjusted its midpoint fixing to counter market volatility amid trimmed Chinese growth projections from Beijing and the World Bank. Geopolitical friction in the Middle East sustains a safe-haven floor beneath the dollar, anchoring the pair despite softer U.S. employment figures.
