{"id":39387,"date":"2018-10-19T08:26:41","date_gmt":"2018-10-19T13:26:41","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39387"},"modified":"2018-10-19T08:26:41","modified_gmt":"2018-10-19T13:26:41","slug":"has-china-finally-lifted-its-thumb-off-of-gold","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39387","title":{"rendered":"Has China Finally Lifted its Thumb off of Gold?"},"content":{"rendered":"
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Has China Finally Lifted its Thumb off of Gold?<\/a><\/h3>\n<\/header>\n
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There\u2019s a lot of talk about the Yuan price of gold falling out of a price suppression channel.\u00a0 Both Zerohedge and Nomura<\/a> have weighed in on this.<\/p>\n

The Yuan price of gold surged overnight to above CNY 8500 per ounce which is a major breakdown\u00a0 But it\u2019s also indicative of something that has long been suspected during this gold bear market.<\/p>\n

China doesn\u2019t want the price of gold to rise.\u00a0 Those accumulating gold \u2014 China and Russia \u2014 have zero incentive to accumulate at higher prices.\u00a0 \u00a0And the gold chart of the last three years bears out that they have had to come in at higher prices on pullbacks because market bottoms keep coming in higher and higher.<\/p>\n

The 2015 low was around $1050.\u00a0 2016 at $1146.\u00a0 2017 the low after a pullback in July couldn\u2019t breach $1208 during a strong post-U.S. election rally.\u00a0 This year the price was briefly pushed below $1200 in the longest downtrend of the seven year bear market but has since popped back over $1230 with its sights now set on\u00a0 $1250.<\/p>\n

China may have no choice here but to let the price of gold rise.\u00a0 Because conditions in other markets are changing rapidly.\u00a0 So, ultimately, what China wants really may not matter anymore.<\/p>\n

Remember, the eurodollar markets broke in late May this year as Jeffrey Snider at Alhambra Partners reminds us daily.<\/p>\n

The PBoC cut the reserve ratio again recently to free up liquidity in Chinese banks but it doesn\u2019t seem to have stemmed the tide.\u00a0 And that\u2019s why it has continually loosened the Yuan fix rate, now approaching 7 vs. the U.S. dollar.<\/p>\n

Offshore dollar markets are the pool of real savings in the global economy and it determines where we are headed.\u00a0 And the offshore dollar hoarders are pulling out of China\u2026 and Europe\u2026 and Japan\u2026. and South America.<\/p>\n

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\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Has China Finally Lifted its Thumb off of Gold? There\u2019s a lot of talk about the Yuan price of gold falling out of a price suppression channel.\u00a0 Both Zerohedge and Nomura have weighed in on this. The Yuan price of gold surged overnight to above CNY 8500 per ounce which is a major breakdown\u00a0 But […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,374,22426,21273,3622,8470,2914,2615,694,16963,839,1031,4318],"class_list":["post-39387","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-gold","tag-gold-bear-market","tag-gold-goats-and-guns","tag-gold-price","tag-nomura","tag-pboc","tag-peoples-bank-of-china","tag-russia","tag-tom-luongo","tag-us-dollar","tag-yuan","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39387"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39387\/revisions"}],"predecessor-version":[{"id":39388,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39387\/revisions\/39388"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}