24.09.201912:40 Forex Analysis & Reviews: Up for grabs again: is the yen almost equal to gold?

The Japanese currency is consistently popular with investors and traders. It is not too volatile, and many see the yen as a protective asset along with the yellow metal. Experts of the largest American bank, Goldman Sachs, offered a new look at the currency of the Land of the Rising Sun, almost equating it with gold.

Goldman Sachs currency strategists recommend investors to buy Japanese currency, calling it the "best opportunity" for investing. Experts are confident that in anticipation of the UN General Assembly meeting, as well as the release of Richmond Federal Reserve Bank data and the US consumer confidence index, the yen will strengthen. Goldman Sachs is confident that the Bank of Japan will not be able to keep the growth of the national currency. Currently, the USD/JPY pair is trading in the range 107.71-107.73. Experts allow the correction of the pair up to 107.50. In the future, the yen is assumed to rise towards 108.12.

According to analysts, the yellow metal and currency of the Land of the Rising Sun will remain reliable safe havens that will help minimize risks from the upcoming crisis. At the same time, the yen may become more attractive to investors since it is cheaper than gold, which has grown significantly in price over the past few months.

Some bank specialists are almost ready to equalize the yellow metal and the Japanese currency. However, it is better for market participants to weigh all the risks and choose the most suitable strategy for saving capital. The recent incident in Saudi Arabia testifies in favor of rising gold prices, which is why investors are again interested in the yellow metal. They actively acquired it as a protective asset. In connection, the precious metal rose in price.

Another supporting factor for gold is the trade standoff between the US and China. Experts are sure that such a situation will drag on for a long time and this conflict has already acquired a "chronic" form.

Goldman Sachs believes that the current price volatility in the gold market, due to the Fed rate cut, has increased the yen's attractiveness. Hence, it is the best option for saving capital. Experts are sure that the Japanese currency is more reliable insurance in case of another financial crisis than gold. It is possible that one of the factors of the inspirational forecast of Goldman Sachs analysts was a fairly quick recovery of the yen after yesterday's fall. The currency of the Land of the Rising Sun survived it relatively painlessly and seems to be able to cope with other risks in a similar way.