Gold (XAU/USD) dropped to its lowest level in two months but managed to erase a large portion of its weekly losses.

The USD/JPY exchange rate at 160 represents the most dangerous level in the foreign exchange market, serving as a critical political and economic threshold where Japanese authorities have repeatedly stepped in to halt the currency’s decline.

Gold is struggling to extend the previous rebound from two-month lows of $4,367 early Friday, challenging offers once again above $4,500, while on track to book another weekly loss.

The US Dollar (USD) changed course early in the American session on Thursday after reaching a fresh multi-week high. The USD index (DXY) briefly traded above 99.50 at the start of the day and is now struggling to hold the 99 mark amid a drastic shift in market sentiment.

For a brief moment in 2021, Rhodium became one of the hottest assets on the planet.

Gold has extended its downward spiral early Thursday, testing bids at the $4,400 threshold, while hitting two-month lows.