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Adden

Registered: 06/04/03
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Gold price holds on to gains as China reignites currency wars
#22080690 - 08/12/15 10:14 AM (8 years, 5 months ago) |
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http://www.bulliondesk.com/gold-news/bullion-morning-gold-price-holds-to-gains-as-china-reignites-currency-wars-99250/
Gold continued to climb higher during Wednesday trading sessions as China’s second currency devaluation in two days is seen as reigniting currency wars in Asia. The spot gold price was last at $1,117/1,117.7 per ounce, up $8.50 on Tuesday’s close. Trade has ranged from $1,102.0 to $1,119.8 so far.
“For today, all eyes will be on China again with dollar/yuan likely to lead the move in metals,” MKS said in a note. The yuan is falling rapidly, it was last at 6.5206, having spent most of the second quarter flat around 6.2100.
Other emerging market currencies are also considerably weaker. China devalued its currency for the second time in two days today by 1.6 percent in an attempt to increase global competitiveness to drive exports.
Trade data released over the weekend showed China’s exports falling 8.3 percent in July from the year earlier. “This has spooked international markets due to the decreased potential for Chinese driven growth – bolstering safe haven demand,” Tom Moore, FastMarkets analyst, said. The move followed yesterday’s cutting of the reference rate by 1.9 percent – the biggest one day fall since 1994.
“After a long time when gold has not performed as a safe-haven it seems to be doing so now – at least it is acting as a store of value while other metals and equities are showing weakness,” William Adams, FastMarkets head of research, said.
As China exports its deflation, a lower yuan will make Chinese exports cheaper and it may be that the Fed delays raising rates, Adams noted. The probability of the Fed raising interest rates in September dropped to only around a third, according to the Fed Fund Future, Commerzbank noted.
“It may be that more downward pressure emerges once the initial currency gyrations have worked through the markets – this could possibly further support gold,” Adams said.
Equities are under pressure again today with Asian and European shares moving lower. The economic agenda is busy today – data out already showed up uptick in Japanese industrial production and industrial activity, although PPI continues to weaken. China’s July industrial production growth fell to 6.0 percent, from 6.8 percent, fixed asset investment growth was at 11.2 percent, after 11.4 percent the previous month, while retail sales were up 10.5 percent, compared with 10.6 percent previously.
Out of the eurozone, the June Italian trade balance disappointed at a 2.81 billion euro surplus. Still to come is eurozone industrial production, while the US figures includes job openings, crude oil inventories and the Federal budget balance. In the other precious metals, silver was unchanged at $15.30/15.35. Platinum at $988/993 was up $8 and palladium at $604/609 climbed $4.
“Platinum and palladium, the precious metals with an industrial character, are clearly tied more closely to gold at present, as they have been largely able to resist the sell-off of base metals,” Commerzbank noted.
- See more at: http://www.bulliondesk.com/gold-news/bullion-morning-gold-price-holds-to-gains-as-china-reignites-currency-wars-99250
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TravelerOfSorts
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Re: Gold price holds on to gains as China reignites currency wars [Re: Adden]
#22083343 - 08/12/15 08:35 PM (8 years, 5 months ago) |
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Taken from Globe and Mail Wednesday Aug 2015 12th China's central bank lowered its peg on the yuan by nearly 2% Tuesday. Gross domestic product grew at an annual rate of 7%. China's GDP isn't growing nearly as strong as 7% this year. Last week, Chinese exports for July came in at 8.3% below year-earlier levels. China's pace of economic growth is a key factor in settling global commodity price trends. China 4% of Canada's exports USA 75% China's more important roll: strong influence on prices in Canada's natural resource sectors roughly half of Canada's exports and more than 10% of GDP Canadian commodity producers receive China-driven decline, hurts value of Canadian Resource output China's pace of economic growth is a key factor in setting global commodity price trends. Downward leg in Canadian dollar could make Canadian exports more attractive. China's government's multipronged efforts to stimulate economy should fuel recovery in commodity demand and prices to Canada's benefit. China isn't just sitting there content to watch its economy content to watch its economy decelerate it is doing something that could lead to better growth in 2016.
-------------------- a soul of solitude but a master of ecstacy in waiting for my rebirth cycle i have hopes that when mushrooms find me it will occur then and i can go about the world as a medicine man walking staff in one hand spaceship in the other a journeyman of nature soon to be stepping up to novice hopefully i will have time to become an expert, and i believe only in death will i become a master
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ballsalsa
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Registered: 03/11/15
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Re: Gold price holds on to gains as China reignites currency wars [Re: TravelerOfSorts]
#22083390 - 08/12/15 08:45 PM (8 years, 5 months ago) |
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buy SVM. that is all
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Jorah
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Re: Gold price holds on to gains as China reignites currency wars [Re: ballsalsa]
#22085251 - 08/13/15 08:02 AM (8 years, 5 months ago) |
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And SVM is...?
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Stonehenge
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Re: Gold price holds on to gains as China reignites currency wars [Re: Jorah]
#22088544 - 08/13/15 06:34 PM (8 years, 5 months ago) |
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They devalued the yuan for the third straight day. This is not good. Plus the big explosion at a major shipping yard which means loss of transport for exports as well as imports plus the damage done. Whole buildings nearby were destroyed, hundreds of cars were destroyed, shipping containers piled up by the hundreds from the explosion, and the death count is much more than the official 17.
They still claim they are growing at 7% but hardly anyone believes that anymore.
-------------------- “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835) Trade list http://www.shroomery.org/forums/showflat.php/Number/18047755
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Stonehenge
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Re: Gold price holds on to gains as China reignites currency wars [Re: Stonehenge]
#22094260 - 08/15/15 09:57 AM (8 years, 5 months ago) |
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More explosions in that hard hit china port. Not only that but they have found sodium cyanide in the mess. They sent in the chemical warfare troops to deal with it. Its a much worse situation than they let on, much like the twin towers on 9-11. But the buildings hit by the blast did not collapse like building 7 in nyc. Its not as bad as fukushima but its bad.
The death toll climbs, damage is worse than they admit and it is a blow to the Chinese economy which was already reeling.
-------------------- “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835) Trade list http://www.shroomery.org/forums/showflat.php/Number/18047755
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Stonehenge
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Re: Gold price holds on to gains as China reignites currency wars [Re: Stonehenge]
#22099806 - 08/16/15 06:11 PM (8 years, 5 months ago) |
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Now they say there were 700 tons of sodium cyanide and they are moving residents away. This is beyond bad, its a major tragedy and a big financial blow. I saw a pic of a parking lot with 1000 new cars that had been trashed by the explosion and they were a distance away. 10 miles away windows were blown out. Does anyone still believe it was only the equivalent of 21 tons of tnt? Maybe that was the size of the first explosion but the second one was huge.
Its still burning and they are afraid to dump water on it because it will react with the s. cyanide and form poison gas. The max that was supposed to be there was 10 tons. It goes to show that winking at regulations and taking graft has a price to pay. That port will be out of action a long long time.
-------------------- “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835) Trade list http://www.shroomery.org/forums/showflat.php/Number/18047755
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Adden

Registered: 06/04/03
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Re: Gold price holds on to gains as China reignites currency wars [Re: Stonehenge]
#22099854 - 08/16/15 06:22 PM (8 years, 5 months ago) |
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It's about to rain and people are going to get gassed. There won't be another explosion, maybe small fires that the firefighters died in. I think they're underplaying it. Toxic fumes will come when it rains. There's a 5km radius, I wouldn't be within 50.
This isn't good. I feel terrible for them and their tragedy. Like any other stuff like this, there's going to be military coverups. I bet it's a lot worse over there on media coverage and their stock market.
With all the dead people and those suffering right now, I feel bad even thinking the US will take the gold when there's nothing left. And also think too, this shit ain't cheap, clean up crews, redirecting traffic.
Who said metals were fear based buys? Well, unfortunately there's a lot of over there. I think their hand is pushed to unload at least at some point. I hope there's some national aide coming to them.
And dont get me started on Fukushima. This planet is dying and I find it abhorrent that we are killing it with all of this. Especially with everything we know now.
This was a bomb waiting to happen.
Metals will get "interesting".
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