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5 to 10 minutes old www.usagold.com --LIVE NEWS--
ECB ready to ease policy if needed, as BoJ launches monetary stimulus and BoE holds rates	16:03 The Age
NZ dollar soars after Japan stimulus move	16:02 TV3 News - Business News
10 to 15 minutes old www.usagold.com --LIVE NEWS--
Sipa Resources funded to advance Thaduna copper drilling program	15:56 Proactiveinvestors - Australia
Canada says supports Bank of Japan efforts to boost economic growth	15:56 Reuters - Business
15 to 30 minutes old www.usagold.com --LIVE NEWS--
Alacer Gold Announces Sulfide Ore Flotation Test Results	15:54 The Street - Markets
Gold hits 10-month low despite Japan stimulus, hopes for ECB cut	15:54 The Economic Times - Markets
Forex: EUR/USD tests the 1.2950 ahead jobs report; More to come?	15:54 FXstreet - Forex News
Budget axe starts landing on economic ‘lifelines’	15:50 FT.com - World
Oregon's economy gets moving	15:50 Bizjournals - Portland (Business Journal)
ECB – a rate cut gets closer	15:46 ForexLive.com
Canada says supports BoJ efforts to boost economic growth	15:45 Reuters - Economy
Construction, manufacturing lift Oregon economy in February	15:44 The Oregonian
30 minutes to 1 hour old www.usagold.com --LIVE NEWS--
ECB ‘ready to act’ to help ailing economy	15:39 The Daily Star, Lebanon
Bank of Japan to pump $1.4T into economy	15:39 The Daily Star, Lebanon
Tomorrow’s Tape: Nonfarm Payrolls, Trade Deficit	15:37 WSJ: Market Beat (Weblog)
Zero Interest Rates is Not Economic Stimulus, Rather a Death Knell	15:36 The Market Oracle - Interest Rates
Treasury says Lew contributing part of his salary	15:31 Associated Press - Washington
ECB stands ready to ease policy if needed, says Draghi	15:31 South China Morning Post - Economy
Dollar flat ahead of US jobs report	15:27 The Age - Markets
TSX closes down for third day in a row as U.S. economic worries grow	15:26 Vancouver Sun
Bob Brown stepping down as managing director of Business Council	15:25 Times-Picayune, Louisiana - Business
Three New 'Cliffs' Threaten The Economy	15:22 NPR - Personal Finance
Gold Price Collapse Triggered by Stop-Losses & Big Fund Sales	15:21 The Market Oracle - The Market Oracle
Yen slumps on BOJ easing, Wall Street …	15:19 Yahoo! India
Kootenay Silver commissions consulting firm for updated Promontorio resource estimate	15:16 Proactiveinvestors - Australia
Japan central bank revamps policy to boost economy	15:16 The Plain Dealer, Ohio - Business
Bank of Japan 2% Inflation Goal Is Unrealistic, Gross Says	15:15 Bloomberg - Markets - Currencies
Yellen: Fed should focus on jobs, even if inflation edges past target	15:15 Reuters - Economy
A 'Permatemp' Economy: The Idea Of The Expendable Employee	15:10 NPR - Economy
Home Prices Continue To Rise; Housing Is Now Economic 'Bright Spot'	15:10 NPR - Economy
Paul Krugman's Unconventional Outlook On The Economy	15:10 NPR - Economy
In 4th Quarter, Economy Shrank For First Time Since '09	15:10 NPR - Economy
Economy Shrank At 0.1 Percent Annual Rate In Fourth Quarter	15:10 NPR - Economy
U.S. Economy Shrinks For First Time In Over Three Years	15:10 NPR - Economy
Will Economic Contraction Affect Debate Over Sequester?	15:10 NPR - Economy
1 to 2 hours old www.usagold.com --LIVE NEWS--
Foreign Central Banks Support Australian Dollar	15:10 Investing Daily
Gold imports surge 48.2pc	15:09 Pakistan Observer - Business
Pakistan can become world’s leading economic power	15:09 Pakistan Observer - Business
Gold slumps to 10-month low	15:09 WA Today - Business - National
ECB holds rates as it sees gradual eurozone recovery	15:09 Business Times Online - World (Premium)
Euro economy PMIs show weak Q1	15:09 Business Times Online - World (Premium)
Aussie retail sales show surprising surge in Feb	15:09 Business Times Online - World (Premium)
CANADA FX DEBT-C$ strengthens to 6-week high as euro rallies	15:08 Reuters - Bonds News
Chile: lots of copper, nowhere to go	15:07 FT.com - Blogs - beyondbrics
Yellen comments hitting the newswires now – will allow inflation >2% slightly and temporarily	15:05 ForexLive.com

BoJ Goes BIG

by Peter A. Grant

Apr 04, AM
(from USAGOLD.com) --

Gold remains under pressure as more easy monetary policy in Japan and increased dovishness in the tenor of ECB President Draghi weighed on the yen and euro respectively, buoying the dollar in the process. The dollar index rose to a new 8-month high, contributing to gold's drop to new lows for the year.

While the latest talk about a phased withdrawal of QE here in the U.S. has also weighed on gold, today's events suggest the age of easy money is going to persist for some time to come. Most notably, the Japanese central bank is going big in the battle against deflation. The BoJ announced today that they would significantly expand its accommodations with the goal of generating 2% inflation within two-years, doubling the monetary base and its JGB purchases over the same period.

Newly appointed BoJ governor Haruhiko Kuroda called it a “new dimension in monetary easing." Indeed! Reuters called it "the world's most intense burst of monetary stimulus." The FT reported, "While he did not scatter money from the back of a Toyota, he came about as close as a central banker might dare."

This is the policy equivalent of going "going all-in." Given that the Japanese economy is about a third the size of the U.S. economy, the Fed would have to do a $4 trillion stimulus to equal the magnitude.

If the BoJ still fails to generate the desired inflation — keeping in mind that Japan has been playing the QE game for more than twenty-years — its pretty damning evidence that quantitative easing doesn't work. Is the next step to throw yen from the back of Toyota?

And then again, what if it DOES work? Does that open the door for the U.S., UK and Europe to take measures of similar magnitude?

Not surprisingly, the yen collapsed by more than 3%. Does the central bank that boldly goes where no one has dared go before win the currency way? Does anyone really win a currency war?

In other monetary policy news: The BoE held steady on both rates and asset purchases. The ECB held steady on rates, but President Draghi had a decidedly more dovish tone in the press conference.

Draghi said the ECB would remain accommodative as long as necessary while highlighting downside risks to growth. This intensified speculation that rate cut may be in the offing, perhaps as soon as May or June if the data remains weak.

The euro fell to a new low for the year against the dollar at 1.2744 during the presser, but then rebounded smartly, establishing new highs for the week back above 1.2900. The rebound in the euro is being attributed to a large bid from a semi-official name, as well as options related activity. There is also probably a general reluctance to press long dollar positions ahead of tomorrow's jobs report, particularly in light of today's much bigger than expected claims print.

Keep in mind that the era of zero interest rate policy and extraordinary central bank accommodations has been a huge contributing factor to the secular bull market in gold over the past dozen years. Not only is it now clear that this era is not coming to an end any time soon, but the BoJ at least has significantly upped the ante. At the low end of the year-plus long range, gold seems like a bargain.

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BoJ Goes BIG