As one of the few currencies that isn’t beholden to a government for its ultimate value, gold is more likely than not to be a beneficiary of any escalation of the currency wars.
European and Asian stocks jumped and US equity futures climbed for a third day on Tuesday, following blowout earnings from Google and as China unveiled plans to launch fresh fiscal stimulus to support the world’s second-largest economy.
"From afar this looks like the most wicked and non-sensical trade war the US via Trump, is waging against the rest of the world...But, in reality, there is a totally different scenario that nobody dares talk about..."
With Chinese wholesale gold demand running at over 1000 tonnes for the first six months of 2018, the lion's share of this demand is being met by gold imports from Switzerland and Hong Kong.
Following Monday's State Council meeting which appeared to signal China entering a new easing phase, PBOC has decided to skip liquidity operations tonight and lower the Yuan Fix to a one-year low - bonds and FX are not happy.
"In 2015, when UC Berkeley’s 10-year contract with Bank of the West was announced, it was predicted that the campus would make $17 million from this partnership."
With Chinese wholesale gold demand running at over 1000 tonnes for the first six months of 2018, the lion's share of this demand is being met by gold imports from Switzerland and Hong Kong.
With many traders on vacation, the algos will be kept busy with a busy weekly slate, with the global PMIs due out on Tuesday, the ECB meeting on Thursday, US Q2 GDP on Friday and corporate earnings releases peaking.
The Monday open of JGBs has been a shock to the system, sending the 10Y yield on Japanese government bonds surging to 0.80%, the highest since February, while the USDJPY is just pips away from breaching a key support line.
"Large moves are becoming more common: 2017 was remarkable. Despite low levels of volatility that made the bar for a large move relatively low, few occurred. 2018 is very different."
