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Yen Will Drag Down Gold

Published 07/17/2017, 01:26 PM
Updated 07/09/2023, 06:31 AM

Gold has been bouncing higher for a little more than a week and my view is that, as it approaches its gap at $117.95, it will reverse lower. Whether it’ll reach the gap or not remains to be seen, but I shorted it Monday morning with a stop at $118.

SPDR Gold Shares ETF

Of aid to this trade would be a re-weakening Japanese yen, which I also see as having topped (note the broken trend line).

Guggenheim CurrencyShares Japanese Yen ETF

This will all probably be decided no later than Thursday morning, when the market has a chance to absorb all the news from Japan’s central bank. That “event’ dominates an otherwise very quiet week.

The Week Ahead

Latest comments

Gold up or down
Nice Post Tim
At a certain point, this pairing will detach.. . Gold will not continue to fall because the BOJ is dying to keep the 10Y at 0.10%. That wouldn't make any sense, I'm not going to sell gold just because the BOJ is intervening in their bond market.
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