I put a question up on the RSG thread in this regard I reckon that China has done a deal with the USA to maintain the peg between the Yuan and the Dollar.
So the dollar falling against the Yen as you point out and the Euro then China is getting the benefit of a lower value currency in Europe and Japan both big markets for China.
Doing it this way saves the DOW and other US markets getting a kick in the Orchestra Stalls as they did when China slipped the peg down a couple of holes a month or so back.
Charts and TA and chicken entrails are one method but there are other ways to join the dots; however, all we need to know is this is good for Gold.
I joked that my predictions have been out by around 5-6 days recently I had said to Biggle’s Gold would be $1,260.00 by last Friday. Funny thing is with the AUD at 76 I’m already there.
However, I did say USA $1,260.00 and knowing how pedantic our little mate is I had better stick to it, I wonder what overnight in NY may do?
I was also wondering if the US rating agencies noticed our government borrowing another $50 B for those underwater French canoes!
I suppose at least the French can walk under the arch they built to triumph without feeling embarrassed now as this submarine deal is the first thing they have won since Hastings in 1066!
