{"id":1910,"date":"2022-12-21T05:58:35","date_gmt":"2022-12-21T05:58:35","guid":{"rendered":"https:\/\/prendergast.net\/?p=1910"},"modified":"2022-12-21T05:58:35","modified_gmt":"2022-12-21T05:58:35","slug":"gold-moves-higher-as-the-dollar-falls-on-the-news-of-a-boj-policy-revision","status":"publish","type":"post","link":"https:\/\/prendergast.net\/?p=1910","title":{"rendered":"Gold moves higher as the dollar falls on the news of a BOJ policy revision"},"content":{"rendered":"
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Gold moves higher as the dollar falls on the news of a BOJ policy revision<\/strong><\/span><\/h1>\n

The Bank of Japan's surprise decision that they would raise their benchmark interest rate cap from 0.25% to 0.50% sent ripples through the global financial markets. Since 2016 the Japanese Central Bank has set its target range for the yield of 10-year Japanese government bonds near zero, with a cap of 0.25%. As other major central banks began to enact interest rate hikes this year the BOJ maintained their cap on its benchmark rate near zero.<\/p>\n

According to Reuters News, "The Bank of Japan shocked markets on Tuesday with a surprise tweak to its bond yield control that allows long-term interest rates to rise more, a move aimed at easing some of the costs of prolonged monetary stimulus…But the central bank kept its yield target unchanged and said it will sharply increase bond buying, a sign the move was a fine-tuning of existing ultra-loose monetary policy rather than a withdrawal of stimulus."<\/p>\n

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The move by the BOJ astounded financial markets globally. The value of the Japanese yen rose dramatically to a four-month high against the U.S. dollar which in turn resulted in strong gains across-the-board in the precious metals. Gold gained approximately 1.7%, silver gained 5.22%, palladium gained 3.79%, and platinum gained 2.53%.<\/p>\n

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As of 4:15 PM EST gold futures basis, the most active February 2023 contract is fixed at $1828.20 after factoring in a net gain of $30.50. Spot gold gained $31 and is currently fixed at $1818.40. Silver had the largest percentage gain of over 5% with the most active March 2023 futures contract gaining $1.20 and is fixed at $24.39.<\/p>\n

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Gains in the precious metals were partially driven by dollar weakness but the vast majority of today's moves were the result of strong buying in the markets.<\/p>\n

Our technical studies indicate that the support levels for gold futures are first at $1795, which corresponds to the longest-term moving average used by market technicians. Followed by the 200-day MA, major support occurs just below the 200-day SMA at $1785 which is also based upon the 23.6% Fibonacci retracement. The Fibonacci retracement uses a data set that begins at $1619 the low hit two months ago and concludes at $1837, the highest value gold made since August.<\/p>\n

By Gary Wagner<\/p>\n

Contributing to kitco.com<\/p>\n

Time to Buy Gold and Silver<\/a><\/span><\/u><\/span><\/span><\/span><\/p>\n

<\/p>\n

Tim Moseley<\/p>\n","protected":false},"excerpt":{"rendered":"

Gold moves higher as the dollar falls on the news of a BOJ policy revision The Bank of Japan's surprise decision that they would raise their benchmark interest rate cap from 0.25% to 0.50% sent ripples through the global financial markets. Since 2016 the Japanese Central Bank has set its target range for the yield … Continue reading Gold moves higher as the dollar falls on the news of a BOJ policy revision<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[621,291],"_links":{"self":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/1910"}],"collection":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1910"}],"version-history":[{"count":0,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/1910\/revisions"}],"wp:attachment":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}