Gold Surges 1% Amid Yen Speculation and Softening Dollar
The price of Gold (XAU/USD) rose over 1% on Wednesday as the US Dollar softened amid speculation that Japanese authorities may have intervened in the foreign exchange market or conducted a rate check. The XAU/USD pair currently trades at $4,373.
The Japanese Yen strengthened across the board, leading to speculation about potential intervention by Japanese authorities, but no official confirmation was made. Meanwhile, US Treasury yields remained firm after weak US jobs data.
New York Fed President John Williams said that US bond yields aren't driven by inflation expectations but rather reflect a solid economy. Williams stated that inflation is not out of control and that current monetary policy is in the right place to achieve price stability toward the Fed's 2% goal.