London: Global financial markets traded cautiously on Monday as investors moved toward safer assets amid currency volatility and geopolitical concerns.
Gold prices climbed to record levels as demand for safe investments increased. The rise in gold reflected growing nervousness among traders who are worried about economic uncertainty and political risks in major regions.
Stock markets in Asia were mostly weaker. Japanese shares fell as the yen strengthened against the US dollar. A stronger yen makes Japanese exports more expensive overseas, which usually hurts large manufacturing companies and exporters.
In currency markets, the yen gained value as investors speculated that authorities could step in to support the currency if its movements become too sharp. The US dollar eased slightly against major currencies as traders adjusted their positions.
China’s yuan also strengthened, reaching its highest level in more than two years. The move came after the country’s central bank set a firmer daily reference rate, signalling confidence in the currency despite pressure on the broader economy.
Global fund flows showed that many investors have been pulling money out of equity markets, especially in the United States and China. This suggests that large investors are reducing risk and waiting for clearer economic signals.
Analysts said markets are being influenced by worries over global growth, interest rate expectations and geopolitical tensions. These factors are pushing investors toward assets seen as safer, such as gold and strong currencies.
For now, market participants are expected to remain cautious as they watch developments in central bank policies and international relations, which could shape the direction of global markets in the coming days.