"China's FXI and gold appear to be acting as if they were locked together. What's going on? When China is booming, as seen through a rising FXI, gold rises, since a booming China suggests a rising Chinese balance-of-payments and probably inflation. When FXI slumps, the probability is that China is "cooling off," in which case commodities in general are declining in price as is the price of gold."
from: www.dowtheoryletters.com
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