Gold is loosely pegged at 8500 CNY imho.
In order for Gold to fall against the USD, either China devalues CNY vs Gold or USDCNY would have to soar.
Neither the US nor China wants either for different reasons.
So why is Gold rising today? XAUCNY is reverting to its 8500 peg yet again.
USDCNY will have to break higher for Gold to break below $1300.
Breaking resistance in USDCNY at 6.3650, there nothing between there and 6.6250. At that level, we can expect a move down at 1290 at least for Gold.
In order for Gold to fall against the USD, either China devalues CNY vs Gold or USDCNY would have to soar.
Neither the US nor China wants either for different reasons.
So why is Gold rising today? XAUCNY is reverting to its 8500 peg yet again.
USDCNY will have to break higher for Gold to break below $1300.
Breaking resistance in USDCNY at 6.3650, there nothing between there and 6.6250. At that level, we can expect a move down at 1290 at least for Gold.