Gold held a two-day gain, supported by a sharp decline in the US dollar after Japan intervened to bolster the yen. The precious metal maintained its upward momentum as the currency intervention by Japanese authorities triggered a broad selloff in the greenback, making dollar-denominated bullion more attractive to holders of other currencies.

The yen surged following the Bank of Japan's suspected market operations, marking its largest single-day rally in months. This sudden shift in foreign exchange markets rippled across asset classes, with gold benefiting from its traditional inverse relationship with the dollar. Traders noted the intervention caught many positions off guard, amplifying the move.

Analysts suggest the intervention signals Tokyo's growing discomfort with yen weakness, potentially setting the stage for further official action. For gold investors, the episode underscores how central bank policy divergence and FX volatility continue to drive short-term price action, even as longer-term fundamentals like interest rate expectations and geopolitical risk remain in focus.