Gold Surges as Japanese Yen Hits Seven-Month High Against USD
Gold has staged a comeback from its four-week lows of $4,283 hit last week, capitalizing on sustained US Dollar weakness across the board. The Japanese Yen (JPY) extends its rally to seven-month highs versus the Greenback after Japan's wage growth data and second-quarter Gross Domestic Product (GDP) revision bolstered expectations for a faster pace of the Bank of Japan's (BoJ) tightening.
This aggressively hawkish BoJ repricing continues to weigh on the USD/JPY pair and the USD, acting as a tailwind for the bright metal. However, it remains to be seen if Gold sustains its recovery momentum, as Oil prices remain elevated at seven-week highs, keeping inflation concerns and Fed rate hike bets alive.
Analysts at Societe Generale argue that Gold has now 'entered a new phase of its 2026 bull run,' characterized less by short-term speculative flows and more by 'broad-based, structural conviction across every category of market participant.'