Gold Tumbles - Is The BoJ Back In The Market?

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by Tyler Durden
Friday, Feb 28, 2020 - 10:01 AM

Gold prices are down over $50 this morning, despite a collapse in stocks and bond yields - and generally weak trend lower in the dollar...

The question is why? Or more appropriately, who?

We may have an answer to this outlier move. Last week we asked (rhetorically): "Are The Japanese Losing Faith? Yen Crashes Near Record Lows Against Gold?"

Noting that JPY and gold had massively decoupled, seemingly breaking out of their unofficial peg.

Perhaps this week's crisis was enough to force the BIS or Bank of Japan back into the precious metals market to stabilize faith in fiat as the following chart shows a series of high volume dumps pressuring gold lower...

...and the chart below shows a huge roundtrip back into the 'peg' for yen against gold...

So did Kuroda and his pals step in?

"free markets" eh?