Yes it’s a knee jerk reaction based on a US centric view of the...

Yes it’s a knee jerk reaction based on a US centric view of the world and gold markets.

If we were coming from outer space to view the gold market from a non-biased perspective, why should we be worried?

The only reason to be worried is if China was selling its gold reserves in order to protect the yuan. If this is not the case and they are continuing to purchase (hoard) gold then that can only be a good thing in the long run for the gold market IMO as the more gold can displace US dollars in the foreign currency reserves of non-US players, the better. The value of China’s gold reserves might fall when valued in US dollars but may actually represent more purchasing power when put up against the currencies of other nations that are devaluing their currencies faster than they are. ie if China and Russia are doing deals for energy in non-US dollar denominated trade then it just comes down to which currency is devaluing faster between the two and what tangible assets any special drawing rights are fixed on (ie how big an influence gold reserves have on pricing SDRS). The US news outlets and US markets will make this look like a big win for the US, ie a stronger US dollar means the US is winning the trade wars, but from outer space it looks like China is winning as when it comes to cross border trade a weakening currency is of the most advantage.

The US will in the end drown in its own dollars and inflation in the US will rise faster, that’s the real effect in my opinion. Trump has proven time and time again that he is good at winning the battle but losing the war.