If you look at the Yen it pretty much tells the whole story for both the US Stock Markets and Gold.

The Yen’s direction is driven by Bank of Japan Governor Kuroda

Kuroda meets with Ben Bernanke. Ben persuades Kuroda to do helicopter money.

More Yen printing (helicopter money) = weaker Yen

Weaker Yen means US Stock Markets go up RISK ON

GOLD goes down

(the Yen and Gold are totally correlated as in weak Yen = weak Gold and vice versa)

That was YESTERDAY

The stock market rose

Gold went down (remember the fear of a correction yesterday)

This is what happened TODAY.

Kuroda changes his mind and decides NOT to do helicopter money!

Stock market falls RISK OFF

Gold RISES

Yen RISES

This is why the YEN and it’s strength are important for GOLD

(By the way the reason Ben Bernanke wanted him to do helicopter money now. is to make the stock market go up into the election in the US.The FED’s hands are tied so they have to use Kuroda.

The FED policies are partly political as the FED governor is appointed by the President and she does not want to lose her job if another party gets elected.