Gold Climbs as Dollar Declines Against Yen Amid US-Japan Trade Worries

Friday, September 7, 2018
By Paul Martin

With bilateral trade consultations reportedly looming ahead, the dollar has witnessed a bit of a decline, which in turn couldn’t help but affect the precious metal’s price.

Gold showed growth on Friday, while the dollar fell against the yen following reports that US President Donald Trump would challenge Japan next on trade issues.

Spot gold rose slightly to $1,200.88 on Friday morning, having previously hit a record nearly one-week high of $1,206.98 the day before, with gold investors eagerly pinning their hopes on steady growth.

“The stronger yen versus dollar is leading to some buying in gold… The recent low of around $1,160 in August is really the bottom in gold for now,” Yuichi Ikemizu, Tokyo branch manager of ICBC Standard Bank, told Reuters.

“The next moves will mostly depend on the employment data tonight and the September Federal Reserve meeting. But it mostly looks like gold is slowly coming up and the dollar is coming off as gold is too oversold and the dollar has been overbought.”

Gold reached a record high of $1,365.23 in April and subsequently tumbled by over 10 percent, showing growth only now.

In the meantime, the dollar fell against the yen following a CNBC report on Thursday citing Trump’s comment to a Wall Street Journal columnist that he might next embark on trade issue resolution with Japan.

Japan’s major oil companies are getting ready to halt all crude oil imports from Iran next month over fears Washington will put limitations on the Asian country, which had previously managed to be excluded from the first rounds of sanctions by securing respective waivers and continued buying a limited amount of Iranian oil.

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