The Moment of Truth for Gold

A Moment of Truth for Gold

Global FX and Commodities: The bullish case for gold, the bearish case for USD ex-yen and the shutdown showdown

The desk posits a bullish outlook for gold while adopting a bearish stance on the USD, excluding the yen, amid ongoing political uncertainties in the U.S. and Japan. Per the full note [source], the commentary highlights the cyclical nature of FX markets and the implications of potential government shutdowns on currency valuations. With gold's appeal likely to strengthen as a safe haven, the desk anticipates a shift in positioning that could favor non-USD currencies. The commentary also revisits the yen's prospects in light of recent political developments, suggesting a nuanced approach to Japanese monetary policy.

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