Bloomberg Daybreak: Asia Edition

Gold Hits $4000, BOJ Rate Hike Dilemma After Takaichi Win

9 snips
Oct 8, 2025
Bill Adams, Chief Economist at Comerica Bank, discusses the surge in gold prices nearing $4,000, attributing this to demand for safety amid economic uncertainties and expectations for lower interest rates. Paul Jackson, a Bloomberg reporter, analyzes Japan's political landscape following Sanae Takaichi's leadership win and its implications for the Bank of Japan's potential interest rate hike. Both guests delve into the complex relationship between economic policy and political pressures shaping the future of markets.
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INSIGHT

Gold Rally Driven By Rate Expectations

  • Gold surged toward $4,000 as investors sought diversification amid U.S. political and market uncertainty.
  • Lower expected interest rates reduce the opportunity cost of holding non-yielding assets like gold, boosting demand.
INSIGHT

Inflation Above Target But Not Crisis

  • Bill Adams sees inflation drifting around 3% rather than collapsing to target immediately.
  • He argues this is frustrating for consumers but not a debasement crisis like hyperinflation.
ADVICE

Rely On Private Data During Shutdowns

  • Use private-sector data to fill gaps during government shutdowns when official releases stop.
  • Treat private indicators as complements, not perfect substitutes, to official statistics.
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