US Treasury Intervenes in Currency Markets, Weakening Dollar and Boosting Gold
The US Treasury has been buying Japanese Yen to prop up its value and prevent devaluation. This intervention in currency markets is a signal that the US wants a weaker dollar, which is bullish for gold.
A photo of US Treasury Secretary Scott Bessent at a cabinet meeting shows him noting down 'Buy $5-10BN in Japanese Yen.' This suggests the Treasury will intervene to stop the Yen from depreciating. By buying Yen, the US is selling and printing dollars, which could lead to more USD being printed and pumped into the system.
This development is part of a broader trend where most G7 countries are spending more on interest repayments than their militaries. This means they need to print more money to pay off debts and fund military expenses, creating a 'fiat currency death spiral.'