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Market News: Did China Link The Yuan to Gold? | The Mesh Report

Market News: Did China Link The Yuan to Gold?

Mike Hammer October 9, 2018 Comments Off on Market News: Did China Link The Yuan to Gold?

We’ve talked many times about the ongoing China-US economic clash, and how many expect China to eventually link their yuan (CNY) to gold. There are signs that this may be happening now.  The South China Morning Post ran an article yesterday stating China increased its officially-reported gold holdings to 1843 tonnes — an increase of a mere 4 tonnes from the previous figure.

Big yawn, right? An astute analyst, either out of brilliance or boredom, put together a chart which shows the yuan moving in lock-step with gold prices, while the US Dollar swings around wildly. Have they gone and done it — actually pinned the Chinese Yuan to gold?  Sharp forex traders would look at this chart and say “probably not”; it’s likely a normal relationship between two things that are relatively stable, and one that is not.  But conspiracy theorists will doubtless go goofy over this.  We advise taking a calm view, and simply trading on.

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