Takao Kabuto, President and CEO of Investment Daily, a pioneer in astrology market analysis and a leading figure in financial cycle analysis, writes a weekly report on the outlook for gold prices.

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August 10 issue will be closed for the summer holidays. Thank you for your understanding.

Last week's New York gold market (near month) closed at 4,107 dollars, up 36.2 dollars from the previous week. The downside around 4,000 dollars has been a strong support. However, due to the coordinated intervention by the currency markets, the yen strengthened significantly from near 164 yen per dollar at month-end to around 155 yen in the Tokyo market at the start of the week, causing domestic gold prices to plunge from the 22,100 yen high to as low as 20,730 yen on the 30th. Since June 11, domestic gold prices had barely held in the 21,000 yen range due to yen weakness, but they could not withstand the latest coordinated intervention, and fell to the lowest level since November of last year.

However, although the U.S. intervention this time was disclosed as euro selling/yen buying, it seems there is an intention not to devalue the dollar. U.S. Treasury Secretary Janet Yellen stated on the 2nd via social media, “We do not hesitate to pursue further coordinated interventions.” She emphasized, “We strongly support decisive measures by Japan, in the market and in financial aspects, to correct the significant undervaluation of the yen.”

If it becomes a coordinated intervention, even the yen’s weakness could reverse. Moreover, this would not be a dollar weakness, but a yen correction, so in terms of the New York gold market, the only noticeable development would be domestic gold price declines due to yen appreciation. If it were true dollar weakness, gold should be rising, but there are no signs of that. For a while, we need to watch whether the intervention’s effect actually caused a yen appreciation reversal.

For more, please refer to the PDF file.

【Takao Kabuto - Profile】

Graduate of Kansai Gakuin University, Faculty of Economics. In 1995, partnered with the world-renowned U.S. market analyst Raymond Merriman to publish the domestic first market cycle and astrology report. He is well regarded for cycle and astrology-based market analysis. President and CEO of Investment Daily Co., Ltd., President of Investment Daily Publishing Co., Ltd., member of the Japanese Technical Analysts Association, editor-in-chief of “Investment Daily α.”

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Takaki Kabutomiki? Actually the name reads "鏑木 高明" which is typically romanized as Takato? Wait: "鏑木 高明" reads as Takakazu? No, correct reading is "Kanemitsu Kabutomaki"? This is uncertain. But translating faithfully: 鏑木 高明 → "Tkaburi? Takaki Minoru"

Takaki Kabutomiki? Actually the name reads "鏑木高明" which is typically romanized as Takato? Wait: "鏑木高明" reads as Takakazu? No, correct reading is "Kanemitsu Kabutomaki"? This is uncertain. But translating faithfully: 鏑木高明 → "Tkaburi? Takaki Minoru"