{"id":5238,"date":"2026-01-28T09:18:48","date_gmt":"2026-01-28T09:18:48","guid":{"rendered":"https:\/\/profitalarm.com\/index.php\/2026\/01\/28\/usd-jpy-rate-check-helps-boost-gold-above-us5000\/"},"modified":"2026-01-28T09:18:48","modified_gmt":"2026-01-28T09:18:48","slug":"usd-jpy-rate-check-helps-boost-gold-above-us5000","status":"publish","type":"post","link":"https:\/\/profitalarm.com\/index.php\/2026\/01\/28\/usd-jpy-rate-check-helps-boost-gold-above-us5000\/","title":{"rendered":"USD\/JPY Rate Check Helps Boost Gold Above US$5,000"},"content":{"rendered":"<\/p>\n

The US Federal Reserve’s January 23 decision <\/strong>to help support Japan\u2019s beleaguered yen is believed to be behind gold\u2019s historic price rise past the US$5,000 per ounce level. <\/strong><\/p>\n

The New York Federal Reserve reportedly conducted a \u201crate check\u201d with currency dealers regarding the US dollar\/Japanese yen exchange rate. The procedure used by central banks involves inquiring about the current market quote for an exchange rate between a specific pair of currencies.<\/p>\n

The action typically precedes an intervention in the forex market by a central bank. In September 2025, the two countries issued a joint statement committing to cooperating on controlling volatility in the currency markets.<\/p>\n<\/p>\n

The yen has experienced a weakening trend on a divergence in interest rates between its central bank and other leading economies, as well as fiscal concerns about its massive public debt. <\/p>\n

A weaker yen has indirectly led to higher US treasury yields, which the Fed seeks to stabilize to support a softer labor market and ease mortgage rates. Anticipating that the Fed plans to help the Bank of Japan support the yen, traders began selling the US dollar, resulting in a significant decline in its value.<\/p>\n

‘There is potentially something larger at play here,’ said David Forrester, senior strategist at Credit Agricole in Singapore, as reported by Reuters. ‘The threat of intervention reflects a broader investor concern that Japanese and U.S. authorities would like a weaker USD. This combined with Trump’s erratic policy-making, including the threat of 100% tariffs on Canadian exports if it signs a trade deal with China, is weighing on the appeal of USD assets.’<\/p>\n

A weaker US dollar is a catalyst for a higher gold price as investors seek safe-haven assets. <\/p>\n

\u201cThere is comfort in holding an asset perceived as secure in a world where the global order may be shifting,\u201d said Chris Weston, head of research at Pepperstone, a financial services company, as per the New York Times.<\/p>\n

The next Fed interest rate decision is scheduled for Wednesday (January 28), and market watchers are expecting the central bank to hold rates steady. <\/p>\n

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n

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