Gold Rallies Above $2,500; JPY Erases Opening Gap on Risk Recovery

Gold prices have extended their rally, climbing 1.3% to $2,515 per ounce during European morning trade, marking the fifth consecutive day of gains amid persistent Fed rate cut expectations. The precious metal continues to benefit from a weakening dollar and growing safe-haven demand. Meanwhile, USD/JPY has recovered from an opening gap down, rising 0.4% to 143.50 as risk sentiment improves. The yen had initially strengthened on Monday's open following weekend concerns about global growth, creating a gap from Friday's 143.80 close. However, positive European equity performance has supported the risk-on mood, allowing the pair to recover. Technical indicators suggest gold faces resistance at $2,525, while USD/JPY eyes the 144.00 psychological level. The divergence between gold's strength and yen's retreat highlights the complex interplay between safe-haven flows and risk sentiment in current market conditions.