Gold takes off as Yen rises and US yields slip

Further to the previous update, noting the slide in the USD/JPY, that move has given Gold the perfect excuse to lift off. The metal was mostly languishing below $2,040 for most of the day earlier, but as the USD/JPY has crumbled and the US yields have fallen, that has allowed the perfect platform for some pretty decent fresh buyers of gold to come out of the woodwork. The metal have now lifted above $2,050 for the first time this week and trade just above $2,055 a short while ago. It has backed off a bit now though, but the topside remains in focus for the time being, unless there is a significant recovery in the dollar. That seems a little unlikely right now, but it could come after the Fed policy decision this evening, if the USA central bank surprises with a more hawkish bias than is currently expected. Right now the markets expect now change in policy this evening, but some I have talked to have erred slightly away from that stance today. We shall see what the Fed delivers later on and I will be on hand to provide a couple of updates, once the outcome is known. Meantime Gold is currently trading at $2,050.70