On the same day in September, two of the world’s major central banks held very important but very different monetary policy meetings. The Fed again did nothing, while the Bank of Japan (BoJ) adopted another non-standard policy measures. Anyway, both central banks continue their unconventional strategies, despite strong evidence that they have been failing. The current U.S. recovery is the worst since the WWII, in spite of all the rounds of quantitative easing and zero interest rate policy. The case of Japan is even more depressing, as the country has been stuck in a sluggish growth for the last 26 years, despite quantitative easing, ZIRP and NIRP.

In this edition of the Market Overview, we will focus on the relationship between the Bank of Japan’s actions and gold. In particular, we will discuss the recent changes in the BoJ’s monetary policy framework and their consequences for the precious metals market. It is always worth analyzing the BoJ’s measures, as they are often copied by the Fed. We will also analyze the link between the yellow metal and the yen, as there is a growing conviction that both assets behave like safe havens.