Short Term Trading Weekend Lounge 30th Nov - 2nd Dec, page-49

Hi radx

I was reading some analysis a few weeks ago which explained that the devaluation of the Yuan was the main reason gold began to weaken. I found it a hard argument to really understand... but it runs along the lines that when the Yuan goes down it adds upward pressure to the $US and so negatively impacts commodity prices in $US terms.

What I mean by that first sentence is... China's reply to the tariffs has been to allow the Yuan to devalue. If the truce is real [and not just rhetoric] then we should see the Chinese step in to defend the Yuan to at least hold it at current levels [which they can do by buying Yuan and selling $US]. If the Yuan continues to decline then ... imo... China is not genuine in their negotiations.

I am no expert in any of this ... just my head-scratching opinions.