Core Viewpoint - Uncertainty surrounding trade negotiations and geopolitical risks is driving investors towards defensive assets, particularly gold, leading to an increase in gold prices [1] Group 1: Geopolitical Risks - The potential imposition of new tariffs on the EU by August 1 is creating a demand for safe-haven assets like gold [1] - Ongoing geopolitical risks in Europe, particularly related to the cap on Russian oil exports, are raising concerns about global energy supply and inflation [1] - Political instability in Japan, with weakened leadership, may complicate trade negotiations with the United States, contributing to market caution [1] Group 2: Market Reactions - The combination of trade tensions, political instability, and inflation concerns is prompting investors to view gold as a defensive asset [1] - Analysts predict that gold prices will continue to strengthen as these uncertainties persist into the new week [1]

Core Viewpoint - Rising dissatisfaction among voters regarding inflation and immigration policies may lead to the ruling coalition in Japan losing its majority in the House of Councillors elections [1] Group 1: Political Landscape - The ruling coalition, consisting of the Liberal Democratic Party (LDP) and Komeito, requires 50 seats to maintain control in the 248-seat House of Councillors [1] - Exit polls from NHK indicate that the coalition is expected to secure between 32 to 51 seats, which puts Prime Minister Kishida Shunichi at risk of facing a no-confidence motion [1] - The potential loss of majority could trigger a new round of elections, increasing political instability in Japan, the world's fourth-largest economy [1] Group 2: Economic Context - The dissatisfaction is primarily driven by rising inflation, which is affecting voters' sentiments [1] - The approaching deadline for tariffs with the United States may further exacerbate the political instability and economic challenges faced by Japan [1] Group 3: Leadership Implications - Reports suggest that Prime Minister Kishida Shunichi intends to remain in his position despite the challenges [1]