For those who have been following – the big story last week was the depreciation in the Yen.
The yen has depreciated sharply above the key 151 level, and has weakened to levels last hit in 1990 (more than 30 years ago!).
At the same time, gold price has started to break out.
After going as high as $2400 at one point, it then dropped back down to $2328.
But the monthly chart below shows the significance of this move.
Gold price has broken out above all time highs:
It some ways, the JPY depreciation, is linked to Gold’s surge, and is linked to how the Feds may react in 2024.
This has broader implications for how Asian currencies, and risk assets may play out in 2024.
So 2 big topics I wanted to discuss today:
JPY depreciation – what will the Bank of Japan do next? Is Gold a good investment?
As always, I want to walk through step by step the thought process, as it is important to understand how everything fits together.
If you just want the conclusion, feel free to jump straight to the conclusion at the end.
This is an FH Premium article written in early May.
I wanted to release it to all readers so you have an insight into my macro views – as it has big implications for how 2024/2025 may play out.
If you find this useful – do sign up for FH Premium for more premium articles like this, including my latest up to date views on Gold.
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Yen has dropped to 1990 levels
This is the monthly chart of the Yen for reference.
After
