The price of gold fell sharply this afternoon after the Bank of Japan decided to intervene in the foreign exchange markets to weaken the national currency to stimulate export growth. The decision to sell the yen, which was the second such move by Japan’s central bank since early August, came after the yen hit fresh record highs against the US dollar on Monday. Japan, whose economy is heavily reliant on exports, saw shipments rise 2.4 percent in September, more than double the projected growth of around one percent. Late last week, Japanese officials expressed concerns with the sharp rise of the yen, which hit all time highs against the greenback for three consecutive sessions to end the week and warned that an intervention was possible. Japan’s finance minister Jun Azumi said gains in the national currency were driven by speculation. The move by the Bank of Japan boosted the US dollar, which is seen as an alternative asset to the American currency. Gold was also pressured by profit taking after the price of the yellow metal gained US$100 last week. Gold traded at US$1,723/oz this afternoon, down US$20 from Friday’s close. Silver dropped 82 cents to US$34.47/oz and platinum pulled back US$38 to US$1,609/oz.

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