Gold futures test 5-session high after BOJ rate hike. - CME Group
Gold futures test 5-session high after BOJ rate hike. - CME Group
Source: CME Group
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DW NOTE
The BOJ raised rates 25bp to 0.50% yesterday — its highest level since 2008 — while pledging to keep buying ¥6 trillion in bonds monthly to "maintain orderly markets." Gold rallied because traders know what the BOJ won't say: you cannot normalise rates and cap bond yields simultaneously when your debt-to-GDP exceeds 260%. One of those commitments breaks.