The gold price fell by 1.7% to around $1,560 per troy ounce yesterday in response to the premature publication of the minutes of the latest Fed meeting. Some FOMC members had spoken out in favour of terminating “QE3” at the end of 2013. That said, the latest meeting of the US Federal Reserve took place before the most recent poorer US economic data were published, e.g. the labour market report. What is more, it was announced that Cyprus is requested to sell a major part of its 13.9 tons of gold reserves in order to pay its share of the bailout package. We do not expect other crisis-ridden eurozone countries to sell gold, for this would have little economic impact and the gold sales would only help reduce the sovereign debt of the country in question to a negligible extent. The psychological impact on the country would be unequivocally negative, on the other hand, because no gold reserves would then be available in the event that the country in question were to leave the eurozone. Yesterday’s market reaction thus seems exaggerated in our opinion, and we expect to see considerably higher gold prices in the medium to long term. In Japanese yen terms, the yellow precious metal increased yesterday to nearly JPY 158,000 per troy ounce, thus achieving its highest level since February 1980. Within just a week, it has climbed by more than 10% in price. The massive depreciation of the Japanese currency is to blame. Kuroda, the new governor of the Bank of Japan, had announced on 4 April that the bond purchasing programme would be significantly scaled up to JPY 7.5 trillion (equivalent to $76 billion) per month. Gold should remain in demand as an alternative currency given the devaluation race between many currencies.