The true secular measure of currencies is gauged against gold, as the metal extends to fresh record highs vs. the British pound GBP, three-month highs vs. the euro, three-week highs vs. U.S. dollar and only three-day highs vs. the rallying yen. While having breached well above its 200-day moving average against both the euro and the dollar, gold remains 11% lower than its 200-day moving average in yen terms. Since there remains ample upside in yen terms, Japanese investors may deem this as an opportunity to drive up the metal to next key targets (78,000 yen and 81,000 yen).
Ashraf LaidiChief Market StrategistCMC Markets66 Prescot StreetLondon E1 8HG, UKDirect +44 02 030 038 674Mobile +44 07 917 208 527a.laidi@cmcmarkets.com
