20.08.2015 - Gold Trading and the China Effect
A higher interest rate scenario in the US also means that Gold may not be so attractive, as Bonds will start carrying higher coupons. Last week’s devaluation of the Yuan created a surge in Gold price over the following two days as investors turned to the shiny metal in search of a safe haven. Since then the past 4 trading sessions has seen price remain within a fairly tight range between with most action between $1126.00 and $1110. China is the world’s number three market for Gold demand but the devaluation of its currency may have a negative effect in the longer run as Gold quoted in US Dollars becomes more expensive. Last Friday China’s biggest Gold Bullion ETF (exchange traded fund), Huaan Yifu Gold, reported a third consecutive outflow of funds...............................................Full Article: Source
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