ForexLive Asia-Pacific FX news wrap: Gold hits another all-time record high, above US$3007

• Vandals have damaged around 20 Tesla (TSLA) vehicles at a dealership
• Japan finance minister Kato says bond market should determine yield movements
• More on reports an Iranian ship has been sunk - still unconfirmed
• Gold hits an all-time record high above US$3005
• PBOC sets USD/ CNY central rate at 7.1733 (vs. estimate at 7.2264)
• Reports that the Israel-Hamas ceasefire has collapsed
• More TSLA news - competitor BYD reveals new charging system that takes just 5 minutes
• Tesla has raised the price for a Y model variant in China, to 313,500 yuan
• Euro EM funds bullish on Chinese consumer stocks, GS report shows
• HSBC on China policy signals that bolster the case for overweight in Chinese equities
• RBA's Hunter says focused on US policy settings, how they'll impact Australian inflation
• Trump says authorizing energy production using coal
• Deutsche Bank on the 10% US equity mkt correction: only leads to recession 44% of the time
• Trump says looking forward to call with Putin - "much remains" until final agreement
• US politics - Trump orders an end to US Secret Service protection of Hunter Biden
• Japan - Buffett's Berkshire buys more
• Franklin Templeton has trimmed its Australian bond holdings
• 52 of 52 economists surveyed expect the Bank of Japan to remain on hold this week.
• How you can tell Trump reads ForexLive (Bowman news announced last week!)
• Gold tops $3,000 with more gains to come as central bank demand fuels bullish outlook
• US retail sales "point to rising consumer strain", but Fed Reserve to stay on the sideline
• Trade ideas thread - Tuesday, 18 March, insightful charts, technical analysis, ideas
• Trump has completely upended the Canadian electoral landscape
• Forexlive Americas FX news wrap: Yen slides as the rally in risk assets continues

The major story of the session was the collapse of the Israel-Hamas ceasefire, with the office of Israeli Prime Minister Benjamin Netanyahu confirming that "extensive strikes" had been launched on Gaza following Hamas' continued refusal to release hostages and rejection of mediator proposals.

Adding to the geopolitical risk, reports surfaced that U.S. forces had sunk an Iranian intelligence-gathering vessel, though as of posting, these remain unconfirmed. I suspect that given the time that has passed, these reports are incorrect.

Oil saw a modest lift during the session, while gold surged to yet another record high, briefly trading above US$3,007, as escalating tensions fueled demand for safe-haven assets.

In FX, major currencies responded in a muted fashion. A broad bid for the USD weighed on EUR, AUD, NZD, CAD, and GBP. USD/JPY and USD/CHF remained firm, indicating no significant flight to traditional safe-haven currencies. USD/JPY climbed (just) back above 149.50, reflecting ongoing yen weakness.

Japan’s Finance Minister Katsunobu Kato addressed the jump in JGB yields, reiterating that bond markets will be left to determine pricing but warning that intervention remains an option if needed. His comments echoed BOJ Governor Kazuo Ueda’s previous messaging.

As a side note, the Bank of Japan meets Tuesday and Wednesday (Japan time), with markets overwhelmingly expecting no policy change, given mounting risks from the ongoing global tariff trade war.

On the central bank front, Reserve Bank of Australia Assistant Governor Sarah Hunter, speaking in Sydney, underscored that the RBA will be cautious—slower than market pricing suggests—when it comes to rate cuts. She also emphasized that the focus remains on U.S. policy settings and their impact on Australian inflation.