Core Viewpoint - Gold futures declined due to a strengthening dollar, despite geopolitical tensions not driving the expected safe-haven demand for gold [1] Group 1: Market Reaction - Following the U.S. attack on Iranian nuclear facilities over the weekend, the market's reaction was muted, indicating a wait-and-see approach regarding Iran's next steps [1] - Analysts suggest that potential Iranian responses could include closing the Strait of Hormuz, increasing attacks on Israel, or retaliating against U.S. targets [1] Group 2: Market Sentiment - Current market sentiment remains cautious, with investors not fully distancing themselves from risk despite the geopolitical tensions [1] - The appreciation of the dollar has diminished gold's appeal as a safe-haven asset [1]

Core Viewpoint - The U.S. aims to prevent further appreciation of the dollar, while Japan seeks to avoid a weak yen that could drive up inflation [1] Group 1 - The U.S. is concerned about the potential negative impacts of a stronger dollar on its economy [1] - Japan is focused on managing the yen's value to control inflationary pressures [1]

Core Viewpoint - Analysts predict that gold prices may decline to $3,200 per ounce in the short term due to progress in trade negotiations, potential appreciation of the US dollar, and reduced geopolitical risks leading to lower safe-haven demand [1] Group 1 - Reliance Securities' senior commodity analyst, Jigar Trivedi, indicates that ongoing trade negotiations are contributing to the potential decline in gold prices [1] - The appreciation of the US dollar is expected to exert downward pressure on gold prices in the near term [1] - A decrease in geopolitical risks is likely to reduce the demand for gold as a safe-haven asset [1]

Core Viewpoint - Short-term gold prices may decline due to the appreciation of the US dollar and easing geopolitical tensions, with analysts setting price targets accordingly [1] Group 1 - Analysts are monitoring the impact of the US dollar's strength on gold prices [1] - Geopolitical conflicts are showing signs of easing, which could further influence gold price movements [1] - Price targets for gold have been established by analysts in light of current market conditions [1]

Core Viewpoint - The U.S. Treasury Secretary, Becerra, stated that there is no intention to seek specific currency targets in the ongoing U.S.-Japan tariff negotiations, indicating a lower likelihood of foreign exchange intervention through currency agreements. However, the approach to correct the appreciation of the U.S. dollar remains unchanged, with a focus on addressing trade imbalances and reducing trade deficits [1][2]. Group 1: U.S.-Japan Tariff Negotiations - The U.S. has expressed a clear stance on viewing trade imbalances as a problem and prioritizing the reduction of trade deficits in the ongoing tariff negotiations with Japan [1][2]. - Becerra emphasized that the U.S. will not set specific currency targets or force a depreciation of the dollar or appreciation of the yen, aligning with the G7 agreement against competitive currency devaluation [2][3]. - The negotiations are expected to be challenging, with Japan seeking exemptions from the 25% tariffs on automobiles, which the U.S. has indicated are tied to national security concerns and thus not open for negotiation [3]. Group 2: International Financial System - Becerra expressed a desire to reform the international financial system, aiming to restore and maintain economic balance, referencing the Bretton Woods system established post-World War II [3][4]. - The U.S. aims to reclaim a strong leadership role in international financial institutions like the IMF and World Bank, which have been criticized for not aligning with Western values amid China's growing influence [5]. - The U.S. administration believes that the expanding trade deficit reflects a decline in American manufacturing, which is unsustainable, and seeks a path toward sustainable development rather than unilateral gains [5].