Institutional investors have talked a lot about the so-called “yen carry trade” over the past couple of years. But that’s really just been a warm-up act for a much bigger story. I’m talking about the “yuan carry trade.”

Japan’s exports were cut nearly in half last month as the global downturn crushed demand for the country’s electronics and automobiles, a development that increases the odds that the Japanese yen could be poised for a tumble.

Gold pushed higher in the overseas markets, peaking near $740 in mid-London trading, but hit the skids at that point, dropping nearly $15 by the second hour in New York, then was flat through the Comex, before finally tailing off again during the Globex to finish at $722.00, down $1.70 from Friday. Overnight, gold has pushed higher.

Gold sank in the overseas markets, rallied back into positive territory by mid-morning Friday, but made its high for the day there, as it declined for the rest of the Comex before steadying through the Globex and finishing at $723.70, down $12.00. For the week, gold was off 1.5%.

With a wheezing economy that’s struggling with housing and credit problems – as well as a weak dollar – it’s clear the United States won’t be in the investment spotlight this year.

It’s only the fifth day in June, but already investors are getting nervous about end of quarter earnings reports. There’s still almost a month to go before most public companies close out their books for the second-quarter, ending June 30.

Japan’s largest bank, Mitsubishi UFJ, has announced that its annual profits have plunged 28%, largely due to its exposure to the subprime market.

The bank said its annual subprime-related losses were more than 120 billion yen ($1.15 billion) and that it could lose another $480 million this year because of subprime exposure.

According to a report by Thomson Reuters, the bank’s president, Nobuo Kuroyanagi, said: “Subprime had a very broad effect on us.

Gold was dead flat straight through the overseas markets yesterday, but once the NYMEX opened it was off to the races, shooting as high as $887 before selling off about $8 at the noon hour, but then catching a second wind in the Globex and pushing to a finish at $881.00, up $16.60.

Gold was tightly rangebound from the overseas markets straight through the NYMEX and Globex sessions on Wednesday, bouncing between $860 and $870, and finishing at $864.40, down $1.30.

Gold moved steadily higher from the overseas markets straight through the New York NYMEX and Globex sessions on Monday, finishing at its intraday high of $874.00, up $17.20. Overnight, gold edged slightly higher in London.