Market News: Did China Link The Yuan to Gold?

chinese gold,
Written by Mike Hammer

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.

You can see the chart in today’s featured article, which is incredibly short.  And let us know what you think. Is this the next salvo by the Chinese to take down the US economy?
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About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as continuing themes. Mike graduated with a business degree and spent years as a financial advisor, before moving to New York and to pursue a career in IT and education. For more than a decade Mike has been working with the Adam Mesh Trading Group as a stock market and commodities mentor. He’s trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to educational webinars.

Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keeps him in touch with "the student mindset".

Mike focuses on the precious metals markets, the energy industry, and the financial sector. His motto is "Plan your trade, then trade your plan!"

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