Kevin with an RMB/Gold update for us.
As a follow up to last week’s post that:
“There is no permanent peg to RMB (CNY) Gold. It only appears that there is a peg when the Chinese are accumulating physical gold production from overseas and draining the West’s inventory. This is now complete and RMB (CNY) gold price is set to move big while RMB (CNY) stays mostly constant. Fact – RMB Gold x RMB = $US Gold Price”
What RMB (CNY) Gold appears to be pegged to is the JPYCNY cross currency forex rate as the first set of charts indicates. What RMB (CNY) Gold is not pegged to is the CNYUSD forex rate as the second set of charts indicate.
Again the next move higher in RMB (CNY) Gold and USD Gold will most likely occur soon and with very little change in CNYUSD rate but with a substantial increase in Yen versus the RMB (CNY)