Japanese Gold Futures Fall as Higher U.S. Rates Spur Position Unwinding

Gold futures in Japan came under selling pressure on the morning of the 28th, with the benchmark August 2027 contract on the Osaka Exchange trading at ¥24,228 per gram as of 11:30 a.m., down ¥130 from the previous day’s settlement. Investors unwound positions after U.S. long-term interest rates rose on inflation concerns, reducing the relative appeal of non-yielding gold, while a decline in New York gold futures also weighed on the domestic market. Japanese gold futures had risen on the 27th as a weaker yen and gains in New York supported buying. Crude oil futures in Japan opened higher after overseas prices advanced, with supply concerns and expectations for a recovery in demand providing support. Gold is likely to remain sensitive to U.S. monetary-policy expectations and economic data, while oil traders will focus on major producers’ supply trends and the pace of China’s demand recovery.

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