Gold vs Yuan

29 Jul 2018

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.

29 Jul 2018

Nota

Here is snapshot of the past two months

4 Ogo 2018

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"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

sprottmoney.com/Blog/usd-cny-the-mirror-image-of-gold-david-brady-02082018.html

26 Ogo 2018

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Turning point appears to have occurred around Aug 15-18. Trade accordingly.

9 Okt 2018

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Chinese return from holiday today and you can see how they adjusted USDCNY, and its impact on the gold price.