One thing to keep in mind when pricing gold in terms of the various foreign currencies is that the stronger their respective currency becomes against the US Dollar, the cheaper gold becomes when priced in terms of that foreign currency.
(Click on image to enlarge)
We’ll have to keep an eye on this chart to see how the Japanese investor sees the gold price now that Kuroda and company have decided to punt on meeting the very market expectations they worked to raise over the last couple of weeks.
This is so eerily reminiscent of what Draghi and company did last year when they built up enormous hopes of huge additional monetary stimulus measures being employed only to greatly disappoint traders/investors. That took the Euro soaring from up from near 1.050 to near 1.100 in a single day last December.
Here we are seeing the same, exact thing with the Yen.
Comments
Log in or sign up to join the conversation.