Precious metals decline on poorer than expected data out of Japan, as complacent traders say “bring on more stimulus!”
Bullion.Directory precious metals analysis 2 September, 2014
By Christopher Lemieux
Senior FX and Commodities Analyst at FX Analytics
Japanese car sales sank to a three-year low, falling 9.1 percent year-over year to 333,471 autos. According to the Japanese car association, minicar sales fell a whopping 15 .1 percent. So, what does one do in a central bank controlled market? Buy risk.
In response, the yen sold off on the expectation of more stimulus from the Bank of Japan (BoJ).
The dollar-yen has briefly surpassed the psychologically significant 105 level, a level not seen since last December.
USDJPY is largely correlated with the “risk on” mentality, and safe haven assets sank.
Gold and silver are off session lows, but they still remain vulnerable. Gold is testing an important demand level at $1,265 per toz., while silver is finding support near $19.20 per toz.
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