Gold showing its inflation hedge credentials as it again eyes a new record

Even as US yields rise this afternoon and the USD/JPY extends its move higher, that has not daunted Gold. So, as mentioned here earlier a few times already, the metal has remained close to the current all high high, at $2,758.49, even s the Yen weakens. Of course that means Gold priced in Yen has continued to rise even more. So, for Japanese investors it could be double bubble, if they sell yen and buy dollars to buy the metal and both appreciate and that is why the hitherto Yen/Gold dynamic has blown out as much as it has this year. The other driver behind the metal defying the increased cost of carry is demand for gold as an inflation hedge and that is very much front and centre of the price action so far today. Gold has yet to set a new record this afternoon, but it sure looks like it is trying to do that. Gold is currently trading at $2,755.10