Gold soars as BOJ notes downside risks to economy
On Friday, gold grew during Asia trade as Japan’s number one financial institution moved cautiously in its recent policy review, but indicated that it might act in the future if required.
In New York, December delivery gold futures edged up 0.45%, being worth $1,347.25 per troy ounce. As for September delivery silver futures, they gained 0.57%, trading at $20.307 per troy ounce. At the same time, September delivery copper futures sagged 0.45%, being worth $2.206 per pound.
Market participants were on the lookout for moderate easing measures. While Japan’s prime minister Shinzo Abe disclosed a broad ¥28 trillion stimulus measure on Wednesday, Reuters posted that the Japanese government might only offer as much as ¥7 trillion in direct fiscal stimulus.
Still if Abe appears to be unable to deliver on his promises of jump starting the national economy with a broad stimulus initiative, then the BOJ could feel extra pressure to lower interest rates more into negative territory.