LONDON, 31 October 2011 - A move by the Bank of Japan to suppress the Yen by buying Dollars sparked today's sharp drop in gold prices, according to the Wall Street Journal, which quotes comment from BullionVault in its report.
The top-selling daily paper in the United States, the WSJ Online calls the 1.3% drop in the gold price a "slump" driven by Tokyo's central bank buying up to $80 billion of US Dollars in a bid to raise the greenback's value against its own against Japanese Yen.
"What we're seeing in currency is active devaluation," the WSJ quotes BullionVault head of research Adrian Ash. "Nobody wants a strong currency right now, and the underlying trend is that it will push people to something that cannot be devalued...and that is gold."
Should Japan succeed in driving the Yen lower - as the Swiss central bank has recently driven its Franc lower against the Euro - "You're going to see traders reconsider gold," agrees another expert interviewed by the paper.
You can read the WSJ's story - originally published by Dow Jones Newswires - syndicated to The Australian here...
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