Gold in US dollar terms right now is amazing but in yen terms it’s frightening.
Today for the first time it costs 600,000 yen to buy an ounce of gold. That’s a three-fold increase since the dawn of the pandemic in March 2020, Worse yet, the price is up 4.3x since 2018 and 20x since the millennium(!).
The chart has gone straight parabolic.
gold in yen terms
The weakness in the yen this week stems from the selection of Sanae Takaichi as leader of the LDP and Prime Minister in waiting. She’s seen as a fiscal dove and that’s worrisome. Japanese 10-year yields are up to 1.67%, which is the highest since 2008.
You can’t help but think of another trail-blazing woman politician in Liz Truss. She delivered a budget that included more spending and that kicked off a mini-crisis in the gilt and pound market.
