The usd-yen (USDJPY) carry trade has a direct correlation with the US markets.
When the Yen appreciates in value versus the dollar (USDJPY goes down since its a fraction USD divided by Yen), the US market drops and gold runs up as a hedge against it.
The NIRP insituted by the BOJ has unintentionally kicked us into high gear as the Nikkei sold off while the Yen got stronger... the complete opposite of their intentions.
Now, even if they correct course, the damage is done to central bank credibility worldwide. People are waking up to the fundamentals since they are unsure if the CBs possess the necessary knowledge and tools to continue the big party on Wall street.
Add threats of cash bans, NIRP, bad economic data, and "helicopter money" with increasing frequency and persistence and you have an excellent atmosphere for gold.
BAA
