Forex
Gold Holds Above $4,000 as Dollar Declines After Japan Intervention
Gold prices held steady above $4,000 an ounce as the US dollar declined against a basket of currencies following Japan's intervention to bolster the yen. The Japanese move has made gold cheaper for most buyers priced in US currency.
The metal has been supported by the US Federal Reserve's decision to leave interest rates unchanged, despite inflationary pressures from the war in the Middle East. Higher borrowing costs are a headwind for precious metals, which do not pay interest.
US Treasury Secretary Scott Bessent said that the Japanese currency is 'very undervalued', and that he believes 'excess volatility' is not healthy. The Bank of Japan's intervention has led to a 1% decline in the US dollar against a basket of currencies on Thursday.