Just a general question to those who are far more savvy with the effects of currency on commodities.
When/if (depending on your viewpoint) the yen carry trade starts to unwind, what will the net effect be on the price of gold? Will the unwinding cause some downward pressure on the USD which would push the POG up as the traditional inverse relationship between POG & VSD comes into effect?
Or will the unwinding cause some free cash to come onto the market, halting a slide & giving rise to a few of the closet bulls, leading to a net demand for quality stocks, cause a halt to the flight to safety?
Thanks in advance