Gold up overnight in Asia on yen strength

Gold showing overnight strength. Up about $4.00 as this is written, broke $1350 at $1353.  Silver trading over $18 at $18.18. Gold and silver both registered unusually strong performances today in New York trading.  Gold was up $14 and silver was up 30¢.

Gold strength in overnight Asia trading has shown a consistent pattern over the past few months with much of the strength coming from a strong Japanese yen.  For years, Asia has pretty much  followed the New York/London lead which flattened the overnight (Asia) price flow. Things have changed.  Some analysts have begun to refer to the yen as a “safe haven.”  That might seem counter-intuitive given the situation in which Japan finds itself next door to North Korea, but the market calls the tune.  Of course there’s no safe haven like gold, and that’s why investors are buying it. (Gold is up in yen over this period.)

Take a look at the overlay immediately below.  It tells an interesting story. Keep in mind that the yen is quoted in yen per dollar, so the yen overlay looks inverse. The chart downtrend (red line) is really an uptrend and vice versa. Note the direct relationship between the yen and the gold price. Tonight’s jump in gold neatly coincides with the yen’s improvement.

For the full picture on gold strong performance today, please scroll below. Pete Grant’s Daily Market Report is a must read today!

We’ll keep an eye on this chart and you can too here.  Play with the chart tools.  You’ll figure out how to draw it yourself.

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