Gold leaps to 1-week high amid dropping greenback

On Thursday, during European trade gold futures surged to a one-week, following the greenback’s tumble against the Japanese yen when the BOJ shocked markets by keeping its monetary policy unchanged.   

The US dollar index, evaluating the dollar’s strength against six major currencies descended to 93.79 during early trade.  

The major US currency slumped 3% against the Japanese yen, trading at 108.41, when the Japan’s major bank stood away from changing its current monetary policy, thus ruining speculation that it would intensify its already extensive easing program.

The evergreen buck was already on the defensive when the Fed left its interest rates intact following its Wednesday’s two-day gathering and released a statement suggesting that it made no sense to increase interest rates.       

Offering tiny hope of a move  in June, the number one US bank told that in the USA economic conditions are expected to evolve in the manner, warranting only gradual increases in the federal funds rate.    

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