Yen Intervention Rumors Cause Gold to Immediately "Explode"
Gold prices surged again on Friday, rising more than 1% and hitting a new record high of around $4,989. The trigger came from a weakening US dollar, pressured by rumors of intervention to strengthen the Japanese yen in the forex market, despite the general risk-on market sentiment.
The dollar continued to lose steam and hit its weakest level since October 2025. The Dollar Index (DXY) fell more than 0.5% to around 97.17, after hitting a daily low of 97.14. When the dollar weakens, gold automatically looks more attractive because it is cheaper for non-US buyers.
Interestingly, US bond yields remained stable throughout the day. This means that gold's rally this time was not due to falling yields, but rather a weak dollar and persistently strong hedging flows. US consumer sentiment data also showed American households becoming more optimistic, adding to the market's movement.
In terms of business activity, the S&P Global survey indicates improving conditions, but new demand signals are weakening in manufacturing and services. This raises concerns that the first quarter's growth rate may not be as strong as expected, despite the US economy previously posting very strong GDP growth in the third quarter of 2025.
Meanwhile, the market is still holding onto the scenario of a Fed rate cut in 2026, although the "dovish" outlook could change if expectations are reduced. Currently, gold remains the leader, up around 15% since the start of the year, while silver has been more aggressive, surging around 39%—a sign that the precious metals rally has not yet completely exhausted itself.
Source: Newsmaker.id
