Friday, February 28, 2014

Yuan sudden weakness

Here is an interesting chart of the Chinese Yuan

The Chinese govt. has been controlling the appreciation of the currency in their attempt to move to a domestic consumption economy and not so dependent on exports.
What is happening?

And gold seems to be tied to the Yuan. Recent reports of large Chinese consumption of gold would lead me to conclude that a weak Yuan would make gold purchases more expensive in China....

Is gold prices in Yuan? Or USD?

Is that changing? If this becomes a story will Americans step up to the plate and buy. The dollar is weak today as well vs. the Euro. The Yen has shown strength lately. Usually a bad sign....

Just thinkin'


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