Gold is solidly tied to the Yuan for the past few years and has intensified since Mid-June when trade wars threats begin to materialize with China.
Inverse relation has a very distinct pattern. When USDCNY rises, Gold falls, When USDCNY falls, Gold rises.
Inverse relation has a very distinct pattern. When USDCNY rises, Gold falls, When USDCNY falls, Gold rises.
Comment:
Here is snapshot of the past two months
Comment:
"The most likely end to the trade war would be involuntary, driven by a U.S. stock market crash followed by a reversal of monetary policy by the Fed to stimulus on steroids. This would be the catalyst for a renewed slide in the dollar, in my humble opinion. A weaker dollar would cause USD/CNY to fall, making Chinese imports more expensive and U.S. exports cheaper, and thereby erode the massive trade deficit between the two countries. This would eliminate the need for tariffs to achieve such an outcome At the same time, it would also start a massive rally in Gold in dollar terms." - David Brady
www.sprottmoney.com/...-brady-02082018.html
www.sprottmoney.com/...-brady-02082018.html
Comment:
Turning point appears to have occurred around Aug 15-18. Trade accordingly.
Comment:
Chinese return from holiday today and you can see how they adjusted USDCNY, and its impact on the gold price.