The way I see a Chinese gold fix working is this; Gold is traded as a commodity, not future contracts, if the price in yuan is set low the gold in China will head West as its cheaper for us to buy off them, if the yuan price is set above the western contract price the west will send gold East to collect the arbitrage and will be left with no gold.
Whatever happens is going to be much more based on supply and demand of shiny rather than on paper futures.
Hopefully this can only be a good thing.
BDR Price at posting:
31.5¢ Sentiment: Hold Disclosure: Held
