Gold, yen flourish in splendid isolation amid global uncertainties

It has been a spectacular year of sorts for gold with prices rising steadily and the strong demand continuing into August. By Friday, gold prices had advanced to $1528, or 19 percent, this year, with valuations continuously surpassing levels not seen in the last six years.

But gold has not been the only star this year. In terms of currencies, the Japanese yen, also favored by investors as a safe haven in times of market uncertainty, has once again been a star performer across foreign exchange markets.

All of the G10 currencies have weakened against the yen this year, with the same trend noted across Asia with the exception of the Thai baht. Impressively, the yen has strengthened by more than 3 percent against the greenback this year, despite the dollar recording strength against a multitude of global currencies.