During Monday's Asian trading hours, the EUR/JPY currency pair edged higher, trading around 184.65. Despite this upward trend, potential gains may be capped due to heightened geopolitical tensions in the Middle East. Such tensions often drive investors towards safe-haven assets, impacting currency markets, including gold.

Gold as a Safe-Haven Asset

Gold has historically been considered a safe-haven asset in times of uncertainty. With rising geopolitical risks, like those currently in the Middle East, gold prices often see an increase. This is because investors seek stability and protection against potential economic shocks.

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