Gold Holds Gain as Japan Currency Intervention Weighs on Dollar

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessGold Holds Gain as Japan Currency Intervention Weighs on DollarGold held a two-day gain, supported by a sharp decline in the US dollar after Japan intervened to bolster the yen.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.el}5kzlh7zlmh1}2tyih][4p_media_dl_1.png Bloomberg(Bloomberg) — Gold held a two-day gain, supported by a sharp decline in the US dollar after Japan intervened to bolster the yen.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountBullion was near $4,100 an ounce in early trading Friday, on track for its first monthly gain since February. The metal has also been broadly supported this week by the US Federal Reserve’s decision to leave interest rates unchanged, despite inflationary pressures from the war in the Middle East. Higher borrowing costs are a headwind for precious metals, which don’t pay interest.The dollar’s near-1% decline against a basket of currencies on Thursday, a result largely of the Bank of Japan’s intervention to prop up the yen ahead of a policy decision due Friday, made gold that’s priced in the US currency cheaper for most buyers. Commenting on the yen, US Treasury Secretary Scott Bessent said in an interview with Fox Business that the Japanese currency is “very undervalued” and that he believes “excess volatility” is not healthy.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againGold is down by more than a fifth since the US-Iran war began more than five months ago, with high energy prices stoking inflationary pressures and raising the likelihood that rates will stay higher for longer. A wave of dip-buying, however, has helped to keep the metal above the key level of $4,000 an ounce in recent weeks, and it remains on track for a monthly gain of more than 2%.The Fed’s decision Wednesday to keep interest rates steady offered further support, particularly as some traders had earlier bet on a hike. But the 9-3 vote in favor of leaving borrowing costs unchanged also revealed conviction among some policymakers that a rise will eventually be needed to meet the central bank’s inflation target of 2%.Fed Chairman Kevin Warsh insisted the latest decision wasn’t a sign of inertia at the US central bank, saying: “If inflation continues to be elevated through the forecast period, interest rates could well be part of that solution, but I wouldn’t say it’s in isolation.”The messaging from Warsh “is that inflation is not alarming, outside of the energy price effect,” said Helen Amos, an analyst at BMO Capital Markets Ltd. The “market’s assessment of inflation might be past its peak,” she said, adding that the Jackson Hole Economic Policy Symposium in late August — where the Fed chair often delivers a major policy address — may be the next big catalyst for gold.In the Middle East, the US and Iran exchanged strikes again this week, with Washington hitting “dozens” of targets in Iran on Wednesday in response to attacks on American military bases in the region. Meanwhile, Saudi Arabia has discussed the formation of a multinational alliance to protect shipping in and near the Red Sea.Spot gold edged up 0.1% to $4,109.23 an ounce at 7:45 a.m. in Singapore. Silver rose 0.3% to $59.17 an ounce. Platinum and palladium were little changed. The Bloomberg Dollar Spot Index, a gauge of the US currency, rose 0.1% after dropping 0.9% in the previous session.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.