#Gold: There is an interesting story on Bloomberg suggesting that China could dump Treasuries, n
#Gold: There is an interesting story on Bloomberg suggesting that China could dump Treasuries, not as part of the #TradeWar but to defend its currency.
https://t.co/9m2TExHRK2?
#Gold: Certainly, the RMB has quickly fallen in value against the USD and Euro over the past month, as this chart of a 50:50 USDCNY EURCNY blend shows. https://t.co/eScbksryGJ
Gold: Together with the move in US dollar-denominated #gold back towards $1300/oz, this has propelled #gold in renminbi towards a recent high. https://t.co/hyxx7bR8VM
Gold: We’ve had questions from investors whether #gold can make progress if the RMB is weakening. Although there has been a fairly tight relationship between the RMB and gold over the past couple of years…
Gold: …we do not believe that gold prices are in any formal way ‘fixed’ against China’s currency. Western investment demand – primarily from the United States and, to a lesser extent Europe – is usually the driver gold higher #gold prices. https://t.co/171OBaE6JI
#Gold: Usually seen via the Comex futures market and through ETF flows (and with an opaque component in the OTC market). https://t.co/MLGsmpN4Ef
Gold: When #gold performed well in 2016 after strong buying seen on Comex and via ETFs, it was not just against the US dollar. XAUCNY moved from around CNY6700/oz to about CNY9200/oz from December 2015 to June 2016. https://t.co/k8k3kFsPja
Gold: So, while China is the largest market for consumer #gold demand, Western investment flows have been the most important factor during gold bull markets in recent times.
Gold: China’s currency is certianly one important factor we watch carefully when monitoring the #gold market. But its not the only thing that matters.
For more commentary and analysis on gold please visiting #goldhub #blog
https://t.co/Rmpct6B1Oz
