?Dollar appreciation leads to Gold low but yen-denominated high?

Gold is traded internationally in U.S. dollars, so when the dollar strengthens, its price tends to fall. Currently, with expectations of higher U.S. rates, the dollar has strengthened, and gold prices have undergone a substantial pullback from the high at the beginning of the year.

However, domestic Japanese yen-denominated gold prices are somewhat cushioned by the weaker yen, making it easier to stay around high levels. In other words,"In dollar terms it may be cheap, but in yen terms it is relatively expensive due to the yen depreciation"situation.

From a household perspective, during a strong dollar and weak yen phase, tangible assets like gold tend to become relatively more expensive, so a cautious wait-and-see approach rather than urgent additional purchases may be prudent. While central bank gold purchases (de-dollarization demand) can provide long-term support, unless the U.S. economy slows or a rate cut occurs, downward pressure is likely to continue.