Month: March 2022

Reuters/Leika Kihara/3-28-2022

“Struggling to swim against the tide taking interest rates higher globally, the Bank of Japan staunchly defended its 0.25% yield cap on Monday by offering to buy an unlimited amount of government bonds for the first four days of this week.”

USAGOLD note: The Bank of Japan, it seems, cares not if the yen plunges. It does not have any interest whatsoever in quantitative tightening. Many wonder if the Fed will at some point be forced to take a similar route with respect to the U.S. bond market. The dollar is up 7% against the yen year date. Gold is up 15% against the yen year to date.

Gold and dollar performance in Japanese yen
(%, year to date)

Chart courtesy of TradingView.com

The post Today’s top gold news & opinion first appeared on Today’s top gold news and opinion.

Financial Times/Barry Eichengreen/3-28-2022

“The decision by the US and allies to freeze Russia’s foreign reserves has unleashed an intense debate about the future of the international monetary system.”

USAGOLD note: The dollar has gone from 70% of reserves in 2002 to 59% today, the result of a deliberate move on the part of central banks to diversify away from the U.S. currency. Eichengreen believes we are moving toward a multi-polar reserve system. He does not mention gold, but it is difficult to think about central banks moving away from the dollar in a serious manner without considering gold the prime substitute – the one currency that cannot be printed into existence.

The post Today’s top gold news & opinion first appeared on Today’s top gold news and opinion.