Gold Futures Rebound in Japan Amid Fed Hike Concerns

Japan's gold futures market stabilized on July 29 after a morning session of losses. The benchmark June 2027 gold futures contract on the Tokyo Commodity Exchange initially traded at a low point but recovered as New York gold futures steadied in electronic trading during Japanese hours.

The contract closed at 21,733 yen per gram, down 67 yen from the previous day's settlement price. Market participants remain concerned about the potential for another rate hike by the U.S. Federal Reserve this year, which could increase the opportunity cost of holding gold and lead to investment outflows.

Despite these concerns, gold prices have remained relatively range-bound around the $4,000 level since late June. Buying has emerged on tests of the downside, preventing a decisive break below that threshold. Geopolitical risks and central bank purchases are seen as providing medium- to long-term support for prices.

In contrast, crude oil futures traded firmly, with Brent crude reversing its prior day's decline during Asian trading hours. Expectations for a recovery in global oil demand and ongoing supply restraint by producing nations underpin the market.