Gold Rebounds Amid Dollar Weakness, But Risks Persist
The gold price saw some recovery following the US open as the dollar eased lower on suspected BoJ intervention in USD/JPY, providing support for gold. However, despite this small rebound, not much has changed fundamentally to signal a return to the risk-on trade.
Risk assets remain under pressure, with oil prices easing from their overnight highs after the latest exchange of strikes between the US and Iran. WTI was climbing back above $90 a barrel at the time of writing, while bond yields are holding onto their gains.
The yen surged more than 1% as traders speculated about another intervention, although there is no clear catalyst for this move. Some traders suggested it could be a simple stop-hunt by 'authorities', with 160 being the new line in the sand for BoJ protectors.