Gold (XAU/USD) has resumed its broader upside trend on Tuesday, and returns to levels near the all-time highs in the $5,100 area. Trade uncertainties, growing fears of a US government shutdown, and market expectations of further Fed easing are boosting demand for safe havens.
The Euro post gains of over 0.39% on Monday as the Greenback weakens, following a sell-off sponsored by US geopolitical jitters and speculation of a coordinated intervention in the FX markets by the US and Japan. The EUR/USD trades at 1.1872, after bouncing off daily lows of 1.1835.
The JPY has strengthened sharply, driven by speculation over imminent intervention risks, as detailed in the report by MUFG's Lee Hardman and Abdul-Ahad Lockhart. The USD/JPY pair has seen significant movement, with a decline from 159.23 to 153.40.